Research To The Influence Of Legal Enforcement On Debt Maturity Structure

Maybe because the news media put too much attention on the stock market,many people impressed that issuing stock is the most important external source offinancing. However, in the real world, Equity financing only take a small part, themain source of external financing for bank loans. From the middle of twentiethCentury to now, many scholars research on corporate debt maturity structure hasformed a relatively complete theoretical research. Including the contract cost theory,signaling theory, tax theory, the maturity matching theory and system theory.Recently, The influence of legal enforcement on debt maturity structure ismentioned. because with the promotion of economy, debt financing bottleneckproblem is increasingly prominent, in order to achieve the corporate debt maturitystructure improvement, it must set up effective protection. Therefore, many countriesin the field of economic construct legal system and financial supervision system isregarded as a national development strategy. The combination of legal enforcementand the debt maturity can promote the efficiency of financing; can also enrich thetheory of debt maturity structure.On the basis of listed enterprise’s data, Test how law affects the enterprise tochoose the debt maturity. It chooses, legal enforcement and the nature of ownershipas the variables of institutional environment. We find that legal enforcement ispositively correlated with the enterprise of long-term debt. And market development,government intervention is negatively correlated with it. This shows that legalenforcement improving the effect on the state-owned enterprises is more significant.Legal enforcement in areas is in low level, long-term debt of state-owned enterprises wassignificantly higher than that of private enterprises. legal enforcement enervates the advantage of.State-owned enterprise on loan.