The Empirical Research On Debt Financing Governance And Enterprise Performance Of The Listed Companies In A-stock Market

Debt financing has great meaning to a enterprise no matter in Promoting healthy macroeconomic growth, but also in encourage the healthy development of the capital market. From the perspective of corporate governance, debt management is an effective way to the corporate governance. It can be through incentive and restraint mechanisms, the signal transduction mechanism and the distribution mechanism of control over right to significantly reduce the transfer agent costs and improve the efficiency of corporate governance.The foreign theoretical and empirical research indicates that debt governance plays an important role in improving the corporate governance; it can be reflected through the corporate performance. While Empirical Study in the relevant aspects made by domestic scholars is quite Inconsistencies, not only in the aspect of the conclusion but also in the selection of variables, the choice of samples and research methods. Compared to study abroad, they are still a degree of insufficient. Because of this, the author draws heavily upon the results of previous studies, and done some exploration and research.Against China's actual conditions, this paper collected data from 1,075 companies which issuing A-shares only in the city of shanghai and Shenzhen from the year of 2004 to 2006 for the empirical testing on their debt financing and enterprise governance. Then the author made a differentiation to the debt structure, done an empirical testing on the effect which the level of debt to finance, the debt maturity structure, the source of debt structure impacted the corporate performance. The results indicated that in China's listed companies, the level of debt financing and the enterprises performance is negatively correlated; the debt maturity structure of the company has a positive impact on corporation performance, and the debt structure of the company sources have a negative performance impact to the enterprise performance. The results are inconsistent to the empirical assumptions, so it shows a soft treatment of claims management effect in corporate governance in China. Thus, in this paper the Status and problems in debt financing and corporate governance in China are analyzed and the framework recommendations are proposed: optimization of the external debt management conditions and the treatment of claims of specific measures. Such as Optimizing debt financing ideas, and Improving the ownership structure of listed companies, allowing banks to carry out strategic shareholdings, standardizing the Host banking system, improving the information disclosure system, establishing of a market-monitoring system, improving the bankruptcy mechanism to protect the interests of creditors, strengthen market intermediaries cultivating, establishing a sound business credit evaluation system, vigorously developing the bond market, establishing a genuine debts relations concrete measures to improve the management of debt financing.