A Study On The Governance Effects Of Corporate Debt Financing Based On Contract Theory

As a uniform theory or organization theory, contract theory has developed quickly and has become one of the foremost areas in the branch of economics and theory study in the past thirty years. The research of contract theory, as well as incentive theory, economics of information, organization economics applied to corporate finance, finance, has established the scientific status of foremost and mainstream areas in modern economic disciplines. The symbol is that the Nobel Economics Prize of five years has been awarded to eight economists who researched and contributed to contract theory and its correlative fields.Based on the scientific status of foremost and mainstream areas of contract theory, with the background of world finance entironment worsening, breach of debt faith between enterprise and bank quickly increasing, debt reconstruction quickly increasing, and with the background of the domestic theory research and practice emphasizing on stock and neglecting debt, the writer tries to grasp the clue of contract theory and regard the debt reconstruction of the Chinese listed companies as an viewing angle under the Chinese finance entironment, and to focus on a study on the governance effects of corporate debt financing based on contract theory.The dissertation begins with the literature review and theory base research. The framework of the logic analysis of the whole paper is contract theory. The main clue of the analysis of the whole paper is the governance effects of corporate debt financing, with the debt contract of design, signing up, performance, and breaching of faith running through. The theoretical framework of the paper goes as follows: regarding the debt reconstruction of Chinese listed companies as an viewing angle under Chinese finance entironment, while emphasizeing the different nature of debt, the rights and interests of investors, and creditors protected, corporate debt solved, the endogenetic mechanism design governance of incompletion debt contract and so on, thus firstly establishing the theory framework of this dissertation. Then it applies theory hypothesis to empirical test together with Chinese listed companies system background, while demonstrating comprehensive framework of theory analysis. It tries to make an empirical study on the inflection and relation of various areas under Chinese finance entironment, the nature of final controllers, different source debt, debt maturity structure, and debt reconstruction. Lastly it expands and optimizes the path of Chinese corporate governance of debt financing, regarding endogenetic governance of debt contract design, bankruptcy mechanism and correlative lawyer system, under Chinese finance entironment as the ending of this dissertation. At the same time, it draws the research conclusion and brings forward the limitation and expectation.This paper mainly explains the above-mentioned thoughts both theoretically and empirically. The ideas can be briefly summarized as follows:The Introduction part, mainly introduces the background and research motives of this paper, while bringing forward the scientific value and realistic meaning, explaining the relative concepts, concluding the logic writing structure, and doing research approaches and innovations of this paper.In chapter one, through reviewing and summarizing literature, it mainly grasps the domestic and overseas literature clues, while focusing on free cash flow, the arrangement of control rights and the incentive theory, control theory, informat ion asymmetry and debt reconstruction theory making up of the finance structure theory, regarding the governance effects of corporate debt financing as the main clue of the analyses of the whole paper, with the debt contract of design, signing up, performance, breaching of faith running through. By reviewing the research into the actualities and limitations of domestic and overseas literature, it brings forward a new research viewing angle ——under Chinese finance entironment. Therefore it establishes the research framework base, and at the same time points out the orientation of future research.In chapter two, by studying the theory basis of the governance effects of corporate debt financing based on contract theory, it illustrates the governance effects of corporate debt financing ex-ante contract design, in the course of contract performance, ex-post contract breaching of faith, debt reconstruction and bankruptcy mechanism. Creditors take part in governance. It establishes the basic core theory of this paper.In chapter three, with the basis of the relative system background analyses, it regards the entironment dependence views as analyses precondition, firstly including the explanation of the concept of Chinese finance entironment, the actualities of the governance of corporate debt financing, the relative system background analyses of Chinese listed companies ownership nature, debt reconstruction, the characters of debt financing on corporate governance——government interference, major stockholders controlling, soft budget constraint, secondly including the actualities and reasons of Chinese listed companies short-term debt, the characters of stockholders rights, board of directors and debt maturity structure governance. It illustrates the background for system, law, endogenetic, ectogenic, macroscopical, and microcosmic factors.In chapter four, from the different nature of debt viewing angle, it tries to study empirically the inflection and relation of various areas under Chinese finance entironment, the nature of final controllers, different source debt and debt maturity structure, debt reconstruction on the basis of reviewing and summarizing literature, relative theories, mathematics model and system background analyses, while applying the Chinese listed companies financial data of CSMAR in GTA and the debt reconstruction data of handwork collection etc from years 2003-2007 to logistic regression model, choosing stylebook and devising research, expressing Chinese finance entironment as the performing mechanism of debt contract of outside corporate governance, trying to empirically study the inflection and relation of various areas under Chinese finance entironment, the nature of final controllers, different source debt and debt maturity structure, debt reconstruction tries to empirical study on the inflection and relation of various area Chinese finance entironment, the nature of final controllers, different source debt and debt maturity structure, debt reconstruction from area and corporate lay, drawing the conclusion.In chapter five, with the path optimized of improving Chinese the governance of corporate debt financing based on contract theory,it tries to solve the key to the path optimized of endogenetic governance design of debt contract with the rights and interests of investors and creditors protected, design of derive from finance contract and accounting rules improving finance contract, improving the Chinese bankruptcy mechanism and correlative law system, bringing forward the model and mechanism of Chinese bank creditor’s rights governance, and developing bond market. At the same time, it suggests optimizing the improvements of the inside and outside corporate governance. It means it improves the multiple structures of stockholders rights, board of directors and Chinese finance entironment.In chapter six, it mainly draws a basic conclusion, with limitations and prospects of this dissertation mentioned which hopefully enables it to be more targeted both theoretically and empirically.