Uitimate Ownership Structure, Social Capital And Bank Loan Contract

Doing research in the field of designing of bank loan contract from the perspective of ultimate ownership structure and social capital has been in the forefront of financial research fields in recent years. Based on the literature review of empirical research on the bank loan contract, firstly, the dissertation not only elaborates the history development,definition, and measurement of social capital in detail, but also builds a set of comprehensive measurement index system of social capital suitable for Chinese listed companies combining with Chinese financing background, and analyses the social capital's index characteristics of listed companies deeply. Secondly, according to the relevant theories of bank loan contract, the dissertation analyses how ultimate ownership structure and social capital impact bank loan contract, and how social capital impact the relationship between ultimate ownership structure and bank loan contract theoretically from the perspective of agency conflict and information asymmetry. And then based on these theoretical analysis, the dissertation uses a sample of 690 listed companies from 2007 to 2014 to form a balanced panel data, constructs static and dynamic models respectively, and tests the relationship among ultimate ownership structure, social capital and bank loan contract empirically by applying static estimating techniques, including fixed-effect regression, random-effect regression, ordered Logistic regression, and dynamic estimating techniques, containing System-GMM, Difference-GMM, and parametric and nonparametric tests and so on. This dissertation is divided into seven chapters:Chapter 1, Introduction. This chapter includes the contexts and implications of the research, the objectives, frameworks and contents of the research, the methodology and technical route, the key terms and concepts.Chapter 2, Literature Review. This chapter reviews the related literature in terms of bank loan contract systematically.Chapter 3, Definition, Measurement and Analysis of Characteristics of Social Capital.This chapter illustrates the history development,definition and connotation,measurement of social capital in detail, builds a set of comprehensive measurement index system of social capital suitable for Chinese listed companies, and then analyses the characteristics of social capital's index of listed companies.Chapter 4, The Impact of Ultimate Ownership Structure on Bank Loan Contract. This chapter analyses how ultimate ownership structure impact the bank loan contract theoretically, and tests the relationship between ultimate ownership structure and bank loan contract empirically by using static estimating techniques and dynamic ones.Chapter 5, The Impact of Social Capital on Bank Loan Contract. This chapter analyses how social capital impact the bank loan contract theoretically, and tests the relationship between social capital and bank loan contract empirically by using static estimating techniques and dynamic ones.Chapter 6, The Reciprocal Influence of Ultimate Ownership Structure and Social Capital on Bank Loan Contract. This chapter analyses how social capital impact the relationship between ultimate ownership structure and bank loan contract theoretically, and tests the relationship between interaction items of ultimate ownership structure and social capital and bank loan contract empirically by using static estimating techniques and dynamic ones.Chapter 7, Conclusion. This chapter includes the main content of the paper, innovation points, policy recommendations, and future research prospects.The primary research results of this dissertation are as follows:(1) The theoretical development of social capital experiences three phases: stages in germination, stages of growth and stages of prosperity. The definition and connotation of social capital contains two levels, namely macro level and micro level respectively. The paper builds a set of comprehensive measurement index system of social capital for listed companies by selecting indicators of social trust, social norms, social participation and social organizations from macro-level and indicators of government network, bank relationship network and social network from micro-level simultaneously. There are significant differences in the characteristics of social capital's index among different industrial classifications and geographical distributions.(2) The ultimate ownership structure is an important factor to influence the bank loan contract. The control rights of ultimate controlling owner, the degree of separation of ultimate controlling shareholder's control rights to cash flow rights and the layers of pyramidal structure are all significantly positive to the degree of tightness of bank loan contract(loan rate will be more higher, loan amount will be more smaller, and loan maturity will be more shorter). On the contrary, the cash flow rights and state-owned property rights of ultimate controlling owner are significantly positive to the degree of looseness of bank loan contract(loan rate will be more lower, loan amount will be more bigger, and loan maturity will be more longer).(3) Social capital is another an important factor to influence the bank loan contract.The development level of social capital is significantly positive to the loose degree of bank loan contract(loan rate will be more lower, loan amount will be more bigger, and loan maturity will be more longer).(4) The relationship between ultimate ownership structure and bank loan contract is relied on the development level of social capital. Higher level of social capital will weaken the negative impact of control rights,separation of control rights to cash flow rights and pyramidal structure on bank loan contract, and it will also strengthen the positive impact of cash flow rights and state-owned property rights of ultimate controlling shareholders on bank loan contract.