On The Relationship Between Debt Financing And Corporate Governance

Financing pattern is the base of the corporate governance.We find the problems that are:debt didn't play the role,the fuzzy boundary of enterprise property rights,most of the debtors and the creditors are subject to the nation;and we prefer to the bond market,which break the balance of the market and so on.Thus there have been failures of governance creditors.At present,there is much research about corporate governance or debt financing,up to date,evaluation of corporate governance indicators is ambiguous and it does not have a recognized system of clear targets.In addition,the corporate governance of the creditors doesn't play the role of external governance,and there aren't the relevant creditors to join in the company's governance.Instead of corporate governance,the value of corporate are used to reflect the relationship. Therefore,whether debt financing can promote corporate governance or not has been more important.As a result,the article has a theoretical value and practical significance for the creditors to play the role in improving the governance of listed companies in China,which further improve corporate governance.This article review the research of debt financing,corporate governance evaluation, debt financing and corporate governance,on the basis of the theory of agency,the theory of control,the theory of market.This paper uses the method that combined with qualitative analysis and quantitative analysis,canonical research and empirical research, compare analysis and summarize analysis.With the use of the corporate governance index,we try to evaluate and analyze the relevance between our debt financing and the corporate governance.First of all,we analyze the status of debt financing of listed companies on China. Through of it,we find that our listed companies prefer to stock financing;debt market is not yet well-developed;the supervision of the market is not perfect and so on.Secondly, we analyze the relevance of between debt financing and corporate governance empirically.In this paper,we choose 124 listed companies from 180 listed companies, which is better in Shanghai.The combined team of comprehensive corporate governance between Hong Kong University and Tsinghua University put forward the index of G.We eliminate the indicator that is the treat in the company with parent-subsidiary relationship,and add up four indicators of the proportion of independent directors in the board of directors,the proportion of shares outstanding,the ratio of cash flow debt,the total number of board of supervisors.Using the factor analysis,we will draw out CGI,which is the corporate governance index,then by regression analysis,the empirical results show that the total liabilities,and are related to the corporate governance index,in line with the debt financing that can promote the theory of corporate governance.The rate of assets and liabilities will be further divided into current liabilities and long-term debt ratio,which we will found that current liabilities to a greater extent will promote the corporate governance,but the long-term debt ratio.Combined with China's national conditions,China's listed companies reveal the problems of the debt.Finally,on the specific conditions of our listed companies,we analyze of the current problems of management of creditor and learning from the debt financing model in Japan and Germany,we put forward the suggestions for improvement,on the basis of a fair and efficient and judicial law enforcement mechanisms,the creditor banks should strengthen hard-bound and improve the system of property rights,at the same time,management should improve the capital market and promote the development of the market creditors.