An Empirical Research On The Relationship Between Investor Protection Enforcement And Debt Maturity Structure

From the perspective of investor protection enforcement,China’s debt maturity structurefactors were analyzed and further research on the economic consequences of the debt maturitychoice in this paper.China’s research focuses on the legislative systems of protection ofinvestors but less on implementation of the legislation and its economic consequences, thisarticle attempts to fill this gap and provide a reference for China’s development of financialcapital market both in the theory and practice.We select data listed companies in2005and2010and use empirical methods to study inthe control of the company size, corporate governance, growth and other factors that affectdebt maturity, we find that the relationship between investor protection enforcement and debtmaturity is positively, investor protection perform better, businesses are more easy to obtainlong-term liabilities, this relationship is reflected in the economic consequences of the debtmaturity, in the model of the impact of debt maturity on audit fees with control of therelevant factors, we find that debt maturity is negatively correlated with audit fees, companywith good implementation of investor protection borrow more longer term, also pay loweraudit fees. Opportunistic behavior of management in good implementation of investorprotection can be inhibited, lower the company the agency costs and more long-termliabilities, thereby reducing the company’s liquidity risk, reduce audit pricing.Conclude by the above:the better implementation of the investor protection,the t morelong-term liabilities, but the resulting economic consequences of the company can pay loweraudit fees.China’s investor protection legislation is not perfect, the quality of the implementation ofthe legislative provisions on corporate governance has become particularly important,therefore the need to strengthen investor protection provisions of enforcement to make therole of legislation to emerge, thereby improving the business the financing situation, so that itcan get more long-term liabilities, reducing the liquidity risk of the enterprise to reduce auditcosts.