Study On The Level Of Rule By Law, Corporate Governance And Debt Maturity

Debt maturity structure is long-term and short-term liabilities total liabilities as a proportion of their enterprise, this is the ratio of long-term debt to total liabilities. Debt maturity structure of debt financed one of the most important financial decisions, appropriate mix of debt maturity structure will not affect debt management benefits, would endanger their own property. Our country is in a period of economic transition, the listed company currently dominated by short-term debt, including bank loans and commercial loans, and debt and does not match the period for which the asset, short-term borrowing long-term oriented. On study of debt maturity structure, most of the features from the company, a single corporate governance mechanism, in addition to a few studies based on the system of environment background, however there is no research study on a variable in the system environment. In fact, debt financing decisions not only overall level of corporate governance, you also need to take account of the external environment, however, the law system environment closely associated with the debt covenants, and level of the rule of law also affects the correlation between Government and enterprises, thus affecting the term of the debt. Therefore, combined with the economic transition period institutional background study on rule of law, the relationship between corporate governance and debt maturity structure.First, paper main based on delegate agent theory and signal passed theory analysis has rule of law level and debt maturity structure of related relationship and company governance and debt term structure of related relationship, theory analysis think rule of law level on debt maturity structure exists positive effect, company governance on company debt maturity structure also exists are positive effect, different area rule of law level will on company governance and debt maturity structure of relationship exists must of effect. Secondly, according to the analysis of these theories put forward the hypothesis of this paper: law and debt maturity is related to corporate governance and debt maturity is related to different levels of the rule of law have an impact on the relationship between corporate governance and debt maturity. Thirdly, according to research assumed established has corresponding of test model, model test process in the selected 2014 years include East,West and central section three big regional’s provinces of listed company 1403 a sample as research object, and will research object level of the rule of law average for boundaries will divided into high rule of law level and low rule of law level, debt term as for dependent variable, rule of law level and company governance as independent variable, company scale, and assets term, and free cash flow as control variable, which company governance will independent Director, and Chairman of Board of Directors meetings, serves as principal component analysis, State-owned shares, and more, in an integrated corporate governance score variable. Finally, concludes that the correlation between the level of the rule of law and debt maturity structure, corporate governance and debt maturity is related, level of the rule of law on corporate governance and debt maturity influenced the relationship between, and make relevant recommendations based on the conclusions.From the internal corporate governance and external environment of rule of law on its debt maturity of the relationship, both internal management but also to external policy development, so as to promote the standardization of corporate debt financing.