The Analysis On Affect Of Managing Debt Of Our Corporation

Corporation management structure becomes more and more important on improving performance and enhancing corporation integrated competition since 90s. Due to merging corporation management structure theory and financing structure theory, debt financing plays a vital role in corporation. However, capital market in China is a new market and immature. As to managing corporation, more theories and practices focus on the enterprise management and state-owned share, but the theory and practice of debt financing is still in initial stage. Especially, some listed companies have high performance and low debt ratio, and the others have low performance and high debt ratio. In addition, company's shareholders have high agency cost. This unreasonable situation is becoming worse and worse. Obviously, researching corporation debt financing is become more important. Therefore, my thesis about research effects of managing debt financing for listed company has theoretical value and practical significance.First of all, this thesis introduces related theories of modem capital structure and managing corporate debt financing. Based on western corporate management theories, it analyzes advantage and disadvantage of effects of managing corporate debt financing about our national listed corporations. On the one side, managing debt financing has following positive effects on corporate performance: ownership structure effect, signal effect, effect of administration in bankruptcy, effect of directly managing corporate, supervising effect, so it is effective way to managing corporate. On the other side, it has side effects: over venture investment effect, undercapitalization effect, bankruptcy reorganization cost effect, residual claim dilution cost effect. Therefore, it shows two-side effects on corporation performance.This thesis has the following conclusion by analyzing out national economic situation and the effects of debt financing on our national listed corporation based on the performance and debt situation of all A stocks listed on the shanghai stock exchange:1. Liability of our national listed companies has important effects on their performance.2. Debt ratio is negatively related to corporation performance: more debt, worse effect of managing debt3. There is function relationship between debt situation of listed corporation and corporation performance. Holding other conditions unchanged, liability has the maximum effect on corporation performance when the debt ratio is 30.11%. At this time, corporation has optimal effects of managing debt.In conclusion, this thesis analyzes the causes of our national debt management, and gives some related suggestion.