The Study On The Debt Financing On Effect Of Listed Companies' Governance

It is widely accepted by the acdemies, practioners and government supervisors that the unrational governence structure of listed companyis the major problem of the security market. Obviously, the governence structure not only affect the market valuation of the stock, but also influence the development of the whole market. This means different govenance mechanism, and debt financing governance is one kind of mechanism. Thus the thesis is aimed to study on the debt financing governance. Different debt financing governance and their mechanism to influence the corporate governance are analyzed. The a empiral study is also conducted to test the mechanism.Fistly, the thesis studys on the corporate governance effect according to the corporate governance theory, financial structure theory and stakeholder theory. The mechanism to the corporate governance are analyzed. At the same time, the thesis also clarifies the term, the source have effects on the corporate governance. The corporate governance level is taken as the numerical of Tobin'Q, and asset to debt ratio, long term debt ratio, bank loan ratio and financing from commercial credit are considerd as the explantory variables to build the model. Using the data from 2004 to 2006, an empirical study is conducted.Results shows that from 2004 to 2006 asset to debt ratio is negative with the numerical of Tobin'Q. This results shows that the debt has weak role on governance, and the hyperthesis is not supported. In 2004, long term debt ratio is postitive with the numerical of Tobin'Q, and with a negative relation in the other years. Intersting, the results are just oppsite contrasting to the long term ratio. the results shows that short term debt can inhance the numerical of Tobin'Q. The empirical results aslo shows that a weak correlation between financing from commercial credit and numerical of Tobin'Q and a positive relationship between loan ratio and numerical of Tobin'Q. It is shows that the effect of debt to governance as inverse U,and is not simplex soft restriction in entired area of debt ratio.