Company's Ultimate Control, Government Intervention And Debt Maturity Structure

Since the1870s, foreign scholars are no longer just focus on the study ofcorporate capital structure, but began to consider more detailed aspects of capitalstructure-debt maturity structure. In their study, mainly related to the impact of thesystem, capital markets, firm characteristics and corporate governance factors on thematurity structure of debt, and the scope of the research is still being expanded.Domestic research started late, mainly on the basis of foreign studies, combined withChina’s institutional arrangements and financial systems to study the factors havingimpact on debt maturity structure factors. In their study, they explore the more factorson the level of firm characteristics. In recent years, China has gradually begun toaddress the institutional level as well as research on the level of corporate governance,but papers are relatively few, research is still shallow.China has special situation and institutional context, in recent years, a largenumber of studies have shown that China’s listed companies are widespreadly exsisting the phenomenon of ultimate control rights. The existence of the ultimate controlrights have a greater impact on the capital structure of listed companies capitalmaturity, does it also has a significant impact on the debt maturity structure?Firstly, this paper sorts out the relevant literature on the debt maturity structure,as a basis for analysis the phenomenon of the ultimate control rights to study theimpact of debt maturity structure. In addition, this paper attempts to consider whethergovernment intervention factors have influence on the relationship between theultimate control phenomenon and the maturity structure of debt. Based on the aboveideas,this paper selects857A-share listed companies in Shanghai and Shenzhen MainBoard as a sample, its2008-2010three-year continuous data observations, designvariables, building a multiple regression model to empirical analysis. The empiricalanalysis is based on the company’s ultimate control rights as a starting point to studythe nature of ultimate control rights, the ultimate control and ultimate separation ofownership on debt maturity structure. In addition, the added government interventionfactors, to observe whether the nature of ultimate control rights and the ultimate control and ultimate separation of ownership on debt maturity structure changes dueto the different levels of government intervention.The main conclusions of this paper are as follows:(1) When the ultimate controlnature of the listed company is non-state，it is hard to obtain long-term debt;(2)Thehigher the ultimate control rights and ultimate ownership separating degree,the higherthe proportion of long-term debt.(3) The government intervention has less influenceon the relationship of the ultimate control rights and debt maturity structure. Abovethis,this paper puts forward series of policy suggestions as follows.We must improvethe relevant laws and regulations,strengthen the penalty and law enforcement,perfectthe creditor protection mechanism of the interest of the listed company,furtherimprove the information disclosure system.