Empirical Study Of China’s Listed Companies In Debt Management

Now, more and more people are concerned about the management of enterprises,especially through the issuance of stock to improve the level of corporate governance andoperating conditions of the phenomenon is increasingly common, but how to increase thedebt ratio to improve the operating conditions of the company is still relativelyless. Fromthe corporate financing and how to manage the enterprise as the background, acombination of theoretical and empirical research approach, in-depth analysis on the foureffects of the introduction of the Debt Financing of China’s listed companies on corporategovernance. These four effects include dilution managers the right to the use of free cashflow, leverage effect of debt on firm performance effect of the threat of bankruptcy, thecreditor directly involved in the company. The validity of the theory and the currentsituation of the effect of the analysis of the above four claims governance of listedcompanies in China, pointed out the direction for the better management companies.This article first look back to what the research results of the advanced countries ondebt management, these results are summarized, and see that their analysis is divided intothree levels: first level is to choose what kind of ways to raise funds, the second level isthe financingagency theory; the third level is the introduction of debt financing, corporategovernance has no effect. Then analysis of our study, most of China’s analysis of why theintroduction of our debt financing does not work to improve the management of theenterprise.Then theoretical analysis on debt management, and summarizes the actual situationof China’s listed companies in this area, formulating hypotheses, an empirical testanalysis in accordance with reality. Balance the sampling rate, the debt ratio of currentassets, long-term asset-liability ratio and return on net assets regression analysis, theclassification of the asset-liability ratio of the turn samples were analyzed, the results didnot play a role in governance of listed companies in China claims.Finally, on the basis of the empirical test, the failure of the debt management to analyzeand put forward three suggestions. That China should fully protect the legitimate rights and interests of the creditors to change the status of the bank as a creditor, but also to draw someof the advanced practices of the country do better in this regard.