Research On Corporate Debt Management

Since the late 1980s, the national economy of China has run into the bottleneck of economic development because of enterprises'debt crisis time after time. Since enterprises'debt-to-asset ratio climbed sharply to 67.58 percent in 1985, the State Department, local government and financial institutions in all levels have organized debts clearing activities to different degrees and scopes for several times. Measures have been taken including funds infusion by finance, exemption of debts by banks, debt restructuring and debt changing into ownership and so on. Nevertheless, enterprises'debts are always spiraling, clearing and borrowing at the same time, or former clearing and later borrowing. To probe into the root, we find that outer activities of paying off debts only reduce the debt-to-asset ratio in form, but cannot touch the intrinsic factor that enterprises lack effective debt management. Therefore, in order to change the phases, we should quicken the corporate restructuring, besides establishing an open, transparent, scientific statue and market restriction mechanism. Beginning with debt management within corporation, enhance debt management level, reform old debt management operating mechanism, control debt risk and crisis from the root. Basing on analyzing modern debt theories systematically, this dissertation designs the harmonious and lean formula management of corporate debts idea which can ensure corporate maximum value.The dissertation is divided into eight chapters. After the Introduction, the rest forms three sections, which are the theoretical basis of corporate debt management, corporate debt lean formula management, and putting corporate debt lean formula management in practice from two prospects of the regular management and the quantitative management.Introduction is the beginning chapter, which deals with the foundation of topic selection, the literature summary of corporate debt management at home and abroad, researching methods and systematic structure, and main innovation points.The theoretical basis of corporate debt management is chapter 2. As the theoretical basis, chapter 2 demonstrates the following four points: Firstly, it establishes two kind theoretic basis of debt lean formula management, which are external theoretic basis and internal theoretic basis. External theoretic basis is asymmetric information and corporate governance theories and internal theoretic basis is lean formula management and cybernetics. Secondly, it investigates the track of asymmetric information and corporate governance theories to corporate debt management, and shows that there exists asymmetric information between creditors and managers, creditors and board of directors, creditors and shareholders to some extent. Therefore, effective management to corporate debt should base on asymmetric information economic environments and corporate governance situation. Thirdly, it discusses the cooperative relationship of agency theory and stewardship theory, which are two mainstream theories of corporate governance under asymmetric information theory, and puts forward it is necessary that agency theory and stewardship theory should be combined under one analyzing framework to form an optimal effective corporate governance model. Based on this, it also analyzes it is strategic management that links corporate governance and management, and corporate debt management focuses on function and affairs management. Thus, corporate debt management is managerial behaviors under asymmetric information theory and corporate governance theory. Fourthly, it is the inevitable choice of corporate debt management to implement lean formula management at the present seedtime. In order to hammer-harden corporate debt management level, we must begin with debt lean formula management.Based on chapter 2, chapter 3 depicts the environmental hypothesis and management thought of corporate debt lean formula management. Corporate debt lean formula management is accomplished under certain environmental hypothesis of laws, credits, contracts, debt markets, corporate governance etc. Established in these environments, corporate debt lean formula management is an elaborate quality control model, with the core idea"details regularization, specialization, and scientific quantification". There are two orientations that are study of the corporate debt regularization management combining with debt flow and of the corporate debt quantitative management from chapter 4 to chapter 7, which implement corporate debt lean formula management concretely.The corporate debt regularization management is chapter 4, which includes financing debt management, operating debt management and repaying debt management. Financing debt management is the foremost stage of corporate debt lean formula management. At the financing stage, debt financed system design becomes the beginning and key of the value chain of debt funds. Because of debt character for item financing different from corporate operating, financing debt policies and their choices exist marked differentia. At the operating stage, Because of asymmetric information, corporate board of directors should control debt costs, eliminate debt risks and protect corporate interests from moral risks and adverse selection in debt operation by its practical controller. Repaying debts on time not only maintains corporate credit, reduces credit costs, but also creates space for further financing debt.The corporate debt quantification research includes chapter 5 corporate debt structure management, chapter 6 corporate debt cost management, and chapter 7 corporate debt risk management. Basing on positive research,chapter 5 argues that corporate current liabilities more relates to earnings management than non-current liabilities. These conclusions offer the theoretical and empirical basis for optimizing debt structure and realizing earnings management effectively. Chapter 6 investigates different kinds of explicit costs and implicit costs in debt movement, designs debt capital cost calculation model renewedly and brings forward some tactics on debt cost management at the end. From the perspective of debt risk control, chapter 7 studies some tactics about debt risk analysis, precaution and elimination.Corporate debt lean formula management involves large numbers of theoretical and practical issues, as complicated. This dissertation only probes into some of those issues, and educes elementary conclusions. If there exists some impropriety, please oblige me by your valuable comments.