Listed Companies Governance Structure On The Maturity Structure Of Debt Research

As the study of corporate finance theory deeps and develops,lots of researches have had a great deal of theory and empirical study on the capital structure. However, looking back these articles, we can find that most of articles assume that all kinds of debts be identical. In fact, some factors such as agency cost, tax, bankrupt cost, break the hypothesis of the MM theory. The choice between long-term debt and short-term debt is different, and there exists optimum Debt Maturity Structure that maximizes the company value. Therefore, in order to reduce companies'debt financing cost and insure manager stimulation, companies must make scientific choice to debt maturity structure.Chinese listed companies prefer equity financing, So that the debt level is low in capital structure. As far as the debt maturity structure concern, short-term debt is high and long-term debt is low in debt proportion. In Chinese listed companies, many system backgrounds that are different to developed countries, such as stock structure, corporate governance, development of the capital market and so on, which makes the debt maturity structure's affection factors more complicated. This paper empirically study on infection factors of the debt maturity structure of Chinese listed companies by micro-analysis, based on classification and summarizing the theory and empirical studying articles and combing situation of Chinese companies'debt financing.This paper is based on panel data and cross-sectional data of 36 listed companies in Shanghai and Shenzhen stock market from 2003 to 2007, and applies pooled time-series, cross-sectional regression and fixed effect regression to empirically study the infection relationship between equity structure factors to debt maturity structure of Chinese listed companies. The examination result proves that: (1)85 percent of the debt is the short-term debt, and it has become the great part in debt maturity structure of Chinese listed companies. (2) There are little relationship between the proportion of management ownership and debt maturity structure. (3) There are significant and negative correlation between the largest share ratio in shareholders, state-owned shares ratio, tradable shares ratio, the number of shareholders and debt maturity structure. (4) The sum of ratios in some large share holders makes significant positive correlation to debt maturity. In order to optimize Chinese listed company's maturity, we should raise managers'shares hold ration, cultivate institutional investors, reform state-owned shares and speed up the development of bond markets.