The Study On The Factors Impacting On The Effect Of Debt Governance In China

Corporate governance can be divided into internal governance and external governance, and debt governance is an important form of external governance. The quality of debt governance has important impact on the overall governance.This article, from the perspective of the impacting factors, studied the effect of the debt governance. First of all, we define the connotation of the debt governance and the effect of the debt governance, and then take the theoretical analysis on the specific effect of the debt governance, provide an overview of the current situation and the problems, try to provide a logical premise for the following study. After that, the factors impacting on the effect of the debt governance are selected for the theoretical analysis from the perspective of improving the effect of the debt governance: we sum up the measure standards to identify the factors impacting on the effect of the debt governance, analyze the impact which the factors playing on the effect of the debt governance according to those standards. Then again is the empirical testing between the effect of the debt governance and those factors. Finally, this paper puts forward relevant proposals promoting the effect of the debt governance on the basis of previous research.The results of our reserch shows that: Firstly, in general, debt governance did not play its due role, the higher the proportion of debt, the poorer the performance of the company. However, the rate of debt financing and corporate performance have a significant positive correlation, showing that the greater the new borrowing, the better the performance of the company. Secondly, the effect of the debt governance depends not only on the ratio of the debt, but also on many intermediate factors. Thirdly, the ratio of state-owned shares, the proportion of short-term borrowing in all of borrowing debt have a significantly negative correlation with the effect of the debt governance. It seems that to reduce the proportion of state-owned shares and the proportion of the short-term borrowing in total loans is conducive to improve the effect of the debt governance. Finaly, the equity degree of checks and balances, the proportion of executives shares are associated with the effect of the debt governance, but a negative effect and not significant. It's necessary to perfect the mechanism of the equity checks and balances and the executives shares.