An Empirical Study On The Effect Of Governaniccee Structure On Debt Maturity Structure

Since Modigliani and Miller put forward the MM theory in1958, the theory circleopened the door of studying capital structure, but most scholars’ study of capital structurestayed at total amount, and the maturities of debt were ignored and treated as homogeneous.Foreign study of debt maturity structure began in the1970s, but attentions were focused onthe role played by debt maturity structure in mitigating agency costs between operators andshareholders, and the factors affecting debt maturity structure were less concerned.Domestic study of financing structure focused on equity ownership structure, then capitalstructure, and debt maturity structure was ignored, therefore, there was more extensivespace to explore the impact of equity ownership structure on debt maturity structure.This paper defines the related concepts of equity ownership structure and debt maturitystructure first, and summarizes the relevant domestic and foreign literature, on this basis,analyzes the characteristics of domestic equity ownership structure and debt maturitystructure, then theoretically analyzes the impact of equity ownership structure on debtmaturity structure and makes assumptions. In empirical analysis section, the Eeviewssoftware is used to descriptively analyze401sample data of A-share corporation inShenzhen Stock Exchange between2007and2010, then equity concentration and nature inthe equity ownership structure are grouped according to certain standards to preliminarilystudy the impact of equity ownership structure on debt maturity structure. Finally, theregression model are made for regression analysis of fixed effects while six indexes ofequity ownership structure as main explanatory variables, firm size, asset liquidity and freecash flow as control variables.The research found that: the three variables to measure equity concentration ofdomestic listed companies and the proportion of legal person share have positive correlationwith debt maturity structure. In equity nature, the state-owned share has no significantcorrelation with debt maturity structure. The proportion of outstanding share has negativecorrelation with debt maturity structure. The research results are basically consistent withthe assumptions.The contribution of this paper is on the basis of delving into the relevant literature,combined with background of domestic institution, studying the impact of equity ownershipstructure on debt maturity structure of Chinese listed companies. This study not onlyprovides a basis to the development of capital market and the improvement of corporategovernance, but also expands the theory system of domestic debt maturity structure.The limitations of this paper are studying the impact of equity ownership structure ondebt maturity structure not within a dynamic framework and ignoring the macroeconomicfactors such as inflation. In addition, for the insignificant impact of state-owned shares onmaturity debt structure, it makes a qualitative analysis only, no further quantitative analysis.