Research On The Influence Of Debt Structure On Financial Distress In China Listed Companies

With the rapid development of security market in our country, the number and size of the listed companies are extending. Simultaneously, the number of the listed companies which are special treated is increasing because of financial distress. An enterprise with financial distress is the combined effect of various factors, and many researchers focus on the early warning research of financial distress, neglecting its real cause. In recent years, some scholars begin to research the influence of ownership structure on financial distress, and find that financial leverage is a very important factor that leading to financial distress. However, these studies consider debt as homogeneous and do not take the influence of debt structure on financial distress into account. In view of the issue, this paper uses the data of China's listed company to research the influence of debt structure on financial distress based on literature review on the influencing factors of financial distress, trying to find the deeper cause of inducing financial distress.The main contents of this paper include:firstly, defining the concept of the financial distress, and introducing its characteristics, manifestations and causes; secondly, discussing the influence of debt structure on financial distress based on the classification of debt structure; thirdly, presenting the research assumption, determining the samples, selecting the variable and building the model; finally, using binary logistic regression analysis to research the influence of debt structure on financial distress. The empirical study reveals that:in maturity structure of debt, enterprises can not be essayer to get caught in financial distress with higher rate of long-term liability; in source structure of debt, enterprises can be essayer to get caught in financial distress with lower bank borrowing rate and trade credit rate; in priority structure of debt, enterprises can be essayer to get caught in financial distress with higher rate of pledge loan, enterprises can not be essayer to get caught in financial distress with higher rate of credit loan.