Government Intervention And Corporate Debt Maturity Structure

For the debt maturity structure of our research is still in its infancy, many scholars start to study its effect on corporate debt structure from the micro-enterprise level. Foreign scholars have highly concerned about the impact of institutional environment and other macro-level factors on the corporate debt maturity structure, they noted that corporate debt maturity structure factors not only have micro-enterprise level factors, but also guidelines by the macro-level factors, corporate debt maturity structures are often born within their geographical macroeconomic environments. Therefore, when Chinese enterprises considering how to choose the debt maturity structure, they should linked their macroeconomic background, research the constraints of external institutional factors on debt maturity structure. Meanwhile, China is in a transition economy, after the fiscal decentralization, local government’s financial pressures and competition, making local government promising to provide a better environment for business, having motives to intervention corporate behavior. Therefore, this paper integrate the relevant literature of the debt maturity structure and government intervention, study the government intervention impact on the corporate debt maturity structure, in order to understand the turn the economy as a breakthrough in China under the local government to promote local economic microscopic growth mechanism.This paper use quarterly data of the non financial listed Corporation as research sample from2005to2007, and use investigation data of the120city in China by the World Bank (2006) to measure the government intervention, tests the impact of government intervention on the corporate debt maturity structure. Through empirical research, this paper has the following conclusions:(1) when the monetary policy is tightened, the government intervention positively correlated with the corporate debt maturity structure;(2) private corporate debt maturity structure has higher sensitivity of government intervention, the influence of government intervention to the debt maturity structure of state-owned enterprises is weakened with the actual controller to improve the administrative level;(3) local government intervention behavior in business helps to reduce the cost of compliance with debt covenants, helps enterprises improve the ability to get more bank loans, under the system that in the absence of the creditors legal protection. This article provides an explanation to support the growth of local government institutional arrangements microscopic mechanism empirical evidence.