Research On Debt Financing & Corporate Governance

At present, one of the most critical problems is the poor-performance corporate governance (abb. C.G ), which will not only affect listing companies' operation, but also determine the future development of the whole capital market. It is a common difficult problem to be resolved by the scholars, regulatory authority and enterprise decision-makers. The financing structure is the base of corporate governance. From the perspective of debt financing, corporate governance issues are discussed.This paper attempts to research corporate governance from the perspective of debt financing, and reveal the mechanism of debt financing to participate in corporate governance in order to perfect corporate governance mechanism and improve our corporate governance level by learning experience abroad of corporate governance model and in an attempt to construct theoretical foundation. In this paper, the main text is divided into five chapters. As follows : Introduction. This paper introduces the topic, purpose and significance, and the current research are reviewed. Displays the logic of this framework in the form of a chart.Chapter1: Definition of the basic concept. Discusses the relationship between the concepts. First, states the meaning and essence of the corporate governance. Second, introduces the development of corporate governance and the stakeholder theory. Third, states the relationship of financing structure and corporate governance, reveal the theoretical foundation about the governing of debt financing .Chapter 2: Analyzes the governing of debt financing, and provides theoretical support for this argument. This part reveals the supervision effect, stimulation effect and control power effect of debt financing based on agency theory, signal transferring theory and control theory. In addition, there is a brief analysis about the governing of the ownership structure of the debt financing. Analysis shows that bank debt has advantages in the implementation and supervision of contracts, but bond financing is more stringent in the capital market effectively.Chapter 3 : Creditors'practice in the corporate governance. Provides empirical support for corporate governance of debt financing. This chapter details the characteristics of the Japanese debt financing, features of corporate governance, and analyzes the effectiveness and defect. The final chapter introduces the changes of Japanese corporate governance model in recent years.Chapter 4: Policy options of corporate debt governance. First, points and analyzes the existing problems in debt financing and corporate governance practice. And then, some frame suggestions are put forward: strengthen bank's internal governance mechanisms, promote the development of corporate bonds market, establish and improve the bankruptcy mechanism and so on.The main innovations in this paper:1. Integration of agency theory, signal transferring theory and control theory, detailing debt financing mechanism from shareholders, manager behavior and potential investors; and analyzes governance differences of bank loans and bond financing.2. Reveals the impacts on debt financing mechanism of corporate governance and analyzes the problems of debt financing.3. On the basis of the theory with practice, put forward suggestions about creditors participating in corporate governance...