An Empirical Research To The Effect On Corporate Governance Of Debt Financing Based On Cash Dividends

The modern enterprise financing structure theory indicated that debt financing is not merely a financing way beside the stock financing, more important is that the contract of debt financing effects the corporate governance structure. Although the viewpoint that debt contracts have certain govern effect in company has been widely accepted, but the institution background of our country is after all different with the Western countries', so when the corporate governance theory of the debt contract is used in our country, it will meet some new questions which can't be avoided, for example, compared with the company controlled by the non-state-owned property right, are there any differences on govern effect of debt financing contract in the company controlled by the state-owned property right? At the same time, any company, no matter it's finally controlled by the state-owned property right or the non-state-owned property right, has not only bank credit, but also the debt contracts caused by commercial credit; any company, no matter what type of its final controller, has not only short term debt, but also long term debt. Are there any differences of govern effect among different type debts? The judgment and solution to these questions has vitally practical significance on evaluating, estimating and applying the govern effect of debt contracts.This paper researches the govern effect of debt financing from the angle of listed companies'cash dividend. First, the cash dividend is the manifest to the questions of corporate governance under the asymmetric information condition. Analyzing from the agency theory, single theory or profit transfer theory, debt financing can substitute or restrict cash dividend. All these are the govern effects of debt contracts towards effecting listed companies'cash dividend behaviors. And then, we select A-stock companies that had cash dividend behaviors from 2000-2004 as the sample, and empirical study the effect of debt financing to cash dividend. The conclusions indicate that: Different type debt contracts affect the listed companies'cash dividend policies differently; Debt contracts have different effects on companies'cash dividend behaviors if they are in different property-right environments. In the end, we summarized the main research conclusions and the significances of the conclusions, and then pointed out the limitations existing the research process, and further questions and directions that should be studied more.