Regional Differences Of The Institutional Environment And Corporate Debt Maturity Structure

As a main part of corporate financing structure theory, debt maturity structure theory mainly studies the optimization of the long-term debt rate and short-term debt rate. In 1970s', the economists began to study the debt maturity structure. By now, there has been a great deal of debt maturity structure mic-literature, including contracting-cost hypotheses, signaling hypotheses, tax hypotheses, maturity matching hypotheses and Liquidation Risk hypotheses . In recent years, China has a lot of scholars from different perspectives to study the debt maturity of listed company structure. But look at the domestic literature, few scholars focus on the effect of institutional environment to the choice of debt maturity structure of private listed companies.Studies have confirmed that the regional institutionalenvironment have profound influence on the debt structure of corporate finance decisions, therefore it bound to have a major impact on the choice of debt maturity structure. The economic reforms of China started in the early eighties hastened the powerful of private enterprises, but the system environment have hindered the financing of private enterprises. So the financing of private enterprises is an important issue. In this paper, basing on the existing theory of debt maturity structure, we study the impact of the government intervention,financial development and the level of law on debt maturity structure of private enterprise from broader perspective of the institutional environment.Firstly, basing on the foreign empirical theory about the debt maturity structure, we analyze the impact of the government intervention,financial development and the level of law on the debt maturity structure. Secondly, by using empirical research methods and establishing the multiple linear regression model, we examined the impact of the regional government intervention,financial development and the level of law on the debt maturity structure of the private listed companies in Shanghai and Shenzhen from 2001 to 2005 with statistical analysis software SPSS13.0. Thirdly, according to the theoretical and empirical research, we pose several methods from multiple angles to improve the financing environment and optimize the structure of financing for private enterprise.The empirical results show that: the debt maturity structure of private listed companies is negatively related to the regional government intervention and Positively to financial development. This show that the regional institutional environment have profound influence on the debt structure of corporate finance decisions.