Ultimate Controller, Creditor Protection And Debt Paying Quality

Creditor protection is an important issue of modern corporate governance. Modern enterprise is built on the enterprise's legal person status and limited liability of shareholders, which has gradually built up company's property rights clearly and established a new enterprise system. However, this also.brings the externalization of the company's risk, which damage to the company's stakeholder's interests. In the company's many stakeholders, creditors are subject to the risks involved in the company's most widely. Thus, States have begun to concern about the protection of creditors of the company. Especially in our country, because the economy is undergoing a transformation and capital market's development is at an early stage, in this context, concerns the protection of creditors of the company, is good for China's enterprises and the healthy development of capital markets.A series of legal system to safeguard the interests of creditors has been drawn. The current domestic research mainly concerns on the system point of view of analyzing the existing problems, designing the system and give a series of recommendations. The author believes that the design of the system is of course essential in the protection of creditors, but also need to examine the current status of creditor protection system, especially the research based on our background, which is the lack of existing research.In China's background, the ultimate controller of listed companies is an unavoidable issue. To Europe and the United States as the representative of the Western countries, market players are mainly private companies, equity does not exist the natural differences, so the creditor protection of western scholars in the study, few take into account the nature of the differences in equity, at most, will be the number of shares dimensions (i.e., shareholding concentration) into account. In China, the ultimate controllers of the majority of listed companies are still state-owned property is a government background. Compared with the non-state property controlling company, which some companies are subject to a greater degree of government intervention, while constraints of the law is limited, raises the question of is that government controller existence, will may affect China's listed companies'creditor protection. It is necessary to consider the factor of ultimate controller into the scope of the study, rather than blindly inherit the western research paradigm. This system of protection of creditors in the improvement and the establishment of modern enterprise system has important theoretical and practical significance.This article uses empirical research methods, complemented by the necessary theoretical explanation and description, from both theoretical and empirical aspects, studies the relationship of the ultimate control of China's listed companies and the quality of debt paying quality.Full-text is divided into five parts:PartⅠ:Introduction. As a starting point for the full text of this article research background, research significance, the main contributions and research on structural arrangements are described.PartⅡ:Background analysis of China's creditor protection regime. From our debt market, the legal system and the ultimate controller of a listed company undertook a review and analysis of the status quo in order to tease out a clearer system of creditor protection, environmental background.PartⅢ:The Literature Review. This chapter is a full study of the theoretical basis, mainly from creditor protection and the ultimate control over two aspects of a comprehensive and systematic introduction to the current domestic and foreign research results and theories. The author believes that the current study focused on the ultimate control of people and business value, the relationship between the firm's capital structure, as well as the ultimate controller of the impact of corporate debt maturity choice, lacking the study of the effect of the ultimate controller on corporate creditors. In the creditor protection, the current study at home and abroad, and non-performing loans from the system design of the two aspects of empirical research. These two directions there is a certain lack of, first, the lack of creditor protection status of empirical research, but fails to propose a suitable measure of corporate debt behavior standards. Again, based on this paper, two major research directions, first, how to measure the quality of corporate debt, but to look at the nature of the ultimate controller for enterprise debt service quality. Part IV, the ultimate control of man and the creditor protection of empirical research. This chapter is a full focus of the study, first of all given the quality of this paper, the theoretical discussion of debt, definitions and research assumptions, through to the ultimate control of listed companies in China who are classified. On this basis, select the appropriate control variables to our country from 2004 to 2007 listed companies as samples, to build a linear regression model to analyze the ultimate controller of the quality of China's listed companies, the impact of debt service. The study found that government-controlled enterprises have had a significant debt service quality and positive impact, that is government-controlled enterprises have a better debt-service quality, and the central control of local government control of people than a greater impact, that is, the central control of enterprises better than the local government-controlled enterprises with a debt service quality. At the same time, the proportion of this paper, the introduction of control over the factors found to control the people have control over the proportion of higher quality debt of enterprises under their control accordingly the better.PartⅤ, conclusions and enlightenment. The results of this study were summarized and pointed out the shortcomings of the study, and future research directions for some may recommend.The contribution of this research is that previous studies have not made an appropriate measure of corporate debt repayment targets, and with little regard to the ultimate control of people's problems, this paper is derived from a theoretical point of view to build up a measure of the quality of corporate debt to repay debt coefficient indicators, and on this basis, the ultimate controller of our properties were more reasonable classification, as the ultimate controller of the nature of the study and control of the ratio of debt repayment for the quality. In particular, previous studies focused on the study of the ultimate controller of the impact of corporate debt maturity structure, and generally considered the ultimate controller of government-backed companies have higher debt maturity structure, which focuses on the formation of the debt from the perspective of research, The paper is a debt repayment from the perspective of research, the previous studies are also a good interface.This study has a number of deficiencies, the study of the independent variables is not very good, including the factors that affect the quality of debt, with certain limitations. In addition, while the government-controlled enterprises have a better debt-service quality, but this debt to improve the quality of what is out of the enterprise's own behavior, or rely on government controller's resources through other means to form, resulting in debt service quality, good appearances, there is no conclusion. Future research could consider the mechanisms of action of the government controller's behavior to reveal the affect the quality of the underlying causes of debt.