Research On The Influence Of The Maturity Structure Of China's Listed Company On Agency Costs

The debt maturity structure and corporate governance are closely linked.Theagency cost is one of the main objects of corporate governance, thus debt maturitystructure has an important influence on agency costs. With the rapid development ofChina 's macro-economic and micro-enterprises, domestic scholars make moreresearches on the influence of the maturity structure on agency costs. The majorityscholars only do the analytical study to the influence of the maturity structure onagency costs, but have not given the enough attention to the debt agency cost's relatedresearch. This paper will make a comprehensive analysis on the influence of debtmaturity structure from the sight of agency costs.Firstly, this article has carried on the review to the relevant literatures of agencycosts from domestic and foreign scholars. I think the researches by the scholars fromdeveloped county are perfect, whether theoretical or empirical. Recently, China'srelevant research begins gradually to be taken seriously, but most of the papers arethe experience test of classical theory of the foreign.Secondly, I have done research on the mechanism of the maturity structure ofthe influence of the maturity structure on agency costs. The debt maturity structureinfluences agency costs by inadequate investment, asset substitution, excessiveinvestment and related signals. Thus, I could conclude that short-term liabilities arenegatively correlated with a variety of agency costs while long-term liabilities areopposite.Thirdly, another conclusion will be made out by empirical analysis of data from Shanghai&Shenzhen Stock Exchange between2007and2009. Short-term debt willhave a limited suppression of agency costs, while the long-term have no suppressionof agency costs. Also short-term have a limited suppression of agency costs, andlong-term are same.Last, I will announce some suggestions: we should develop bond market,consummate the structure of corporate governance, infirmly the soft restrict of debtbudget, strengthen the hard restrict of debt budget, consummate bankruptcy system.