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Debt Financing, Corporate Governance Effect And Its Mechanism

Posted on:2004-05-29Degree:DoctorType:Dissertation
Country:ChinaCandidate:M S WangFull Text:PDF
GTID:1116360095951099Subject:Agricultural Economics and Management
Abstract/Summary:PDF Full Text Request
Corporate Governance has been the common issue of the Market Economies. And it is most important to study the corporate governance effects and their mechanisms of debts, because of the ignoring of the roles and their mechanisms of the creditors in former theories and practices on corporate governance, especially in China, where the listed corporations with just poor performance have heavy debts but the ones with good performance have little debts, so the corporate governance effects of debts are worsening, the creditors are faced with heavy agent cost and loss.The dissertation attempt to answer following questions, and accordingly drawing some conclusions:1. Theoritically say, what and how is the corporate governance effects of debts? Through summarizing the available relevent papers and theoritically analyzing, it is demonstrated that debts play the positive roles in corporate governance, which can cut down the agency costs between the shareholders and the managers.2. Although theoritically say that debts play the positive roles in corporate governance, it really do, in China? Through deep empirically estimating and analyzing, it is demonstrated that debts did not play the positive roles, but the negative roles, in corporate governance, in Chinese listed corporations, and which is called the corporate governance effects being weakening and worsening. The debts' corporate governance effects' being weakening and worsening are specifically sorted as equity structure effects' weakening and light worsening, free cash flow effects' weakening, and wage or being on the job consuming effects' weakening and hard worsening.3. Why Chinese listed corporations' debts play the negative roles in corporate governance? Does it is because the theories' faults, or it is because the reality's irrationality? What are the reality's irrationality? What are the consequences of the reality's irrationality? How to change the situations? Through deep analyzing combinded theoritic ways to empiric ways, it is demonstrated that the reasons on which the debts' corporate governance effects' being weakening and worsening are the lackage and imperfection of the creditors mechanisms in corporate governance, which are leaded to by the irrationality in debts behaviours because of governmental intervening. It is also demonstrated that the lackage and imperfection of thecreditors mechanisms in corporate governance also leaded to the creditors facing huge agency costs and loss. So, it is very important to strengthening the mechanisms of the creditors in corporate governance.4. How to strengthening the mechanisms of the creditors in corporate governance? The mechanisms of the creditors in corporate governance should be variety, but there are two key mechanisms should especially be attached importance to, one is the Bankruptcy as a mechanism of creditors in corporate governance, the other is The roles of banks in builting up the mechanisms of creditors and improving the corporate governance effects of debts.The dissertation can be divided into four main parts. Firstly, depended on the theories on corporate governance and corporate finance, the corporate governance effects of debts are theoritically analyzed. Secondly, the corporate governance effects of debts are empirically estimated and analyzed. Thirdly, the causes of the corporate governance effects of debts and the necessity of their mechanisms are theoritically and empirically and comparatively putted forward and explicated. Lastly, the policies of strengthening the mechanisms of the creditors in corporate governance are putted forward and explicated also theoritically and empirically and comparatively.There are nine chapters in the dissertation, each chapter can be abstracted as follows except chapter 1 ,which is an intruduction.Chapter 2: Beginning with the basic theories on corporate governance, the problems of agency costs on equity and the efficiency of the mechanisms of the shareholders in corporate governance are theoritically analyzed.Chapter 3: The corpor...
Keywords/Search Tags:Corporate Governance, the Stucture of Corporate Finance, Debts, the Mechanisms of Creditors in Corporate Governance
PDF Full Text Request
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