Institutional Environment、the Voting And Cash-flow Rights Divergence And Debt Financing Cost

The continuing development of the family business is one of the important driving forcefor China’s economy to keep growing, while the financing issues key to the healthy and stabledevelopment of the relationship to the family business in the process of development of thefamily business. Due to the special status of the family business has been difficult to finance,such as other state-owned enterprises are being discriminated against compared to bankfinancing. In addition to the Bank intervention by administrative factors, family business dueto the special nature of its own equity; multi-layer pyramid control caused by ownership andcontrol of the high risks must be taken into account by the creditors of the borrower.The liabilities financing has been the main content of the domestic and foreigncompanies financial scholars. Influencing factors in this article from the financing system thecost of environmental analysis, a lot of empirical research at home and abroad have found thatthe main factors, including company size, profitability, growth, asset-backed capacity, theeffective tax rate, as well as industry characteristics, these studies mainly from thecompany Idiosyncrasy study the influencing factors of the cost of capital, without consideringthe environmental impact of the financing system. This paper argues that capital funding bythe institutional environment in which enterprises. Good areas of the system, the low degreeof government intervention, a high level of market-oriented financial environment report, toThe institutional environment good areas, to be able to inhibit the separation of ownership andthe hollowed motivation enterprises reduce risk, thereby reducing the cost of debt financing.Shanghai and Shenzhen A-share non-financial listed companies in2004-2009empiricaldata samples, empirical test of the institutional environment under control companycharacteristics variables, and the ultimate controller of the nature of what impact the cost ofcorporate debt. The study found: institutional environment and ultimately control theseparation of ownership and degrees have an important impact on the cost of corporatedebt. The greater the degree of separation of ownership and higher financing costs, the higherthe degree of market-oriented enterprises, the lower the degree of government intervention,the higher the level of the rule of law, the higher the level of financial development areas,lower the cost of liabilities.