Empirical Study About The Influence Of Corporate Governance On Debt Maturity Structure

There is a mutual influence and mutual restriction relationship between debt maturitystructure and corporate governance. Different debt maturity has different properties, it alsohas different influence on corporate governance. The effectiveness of corporate governancehave a significant impact on corporate financing decisions as well. Because of thesubstitution affect between corporate governance and short-term debt, good corporategovernance can reduce the agency cost and protect the interests of investors, on thecontrary, lowering the debt maturity can adjust corporate governance. This article is toverify the influence of corporate governance on the enterprise financing period and toresearch the influence of time factor.This thesis is based on equity restructuring, uses607companies which listed on theShanghai and ShenZhen stock exchange before2006as the research samples. Use theempirical research of scholars at home and abroad for reference, this article is based on theagency cost theory, information asymmetry theory, tax hypothesis theory and durationmatching theory, combined with static and dynamic methods, detailed analysis howcorporate governance influence the debt maturity structure.First of all, the thesis carries out the descriptive analysis about overall samplesshowing that the debt proportion of listed companies’ in our country is mostly short-termdebt and it is obviously contrary to the actual condition of abroad. Secondly, in thecross-section, in order to eliminate the collinearity problem among variables, this paperchoose the method of stepwise regression analyze the whole sample. In the stepwiseregression analysis, the factors which get through the significance level and finally enterinto the model are as follows: share proportion of the largest shareholder, level ofmanagerial share ownership, company size and to assets. Finally, considering the timefactor and do the Panel Data Analysis. By means of Unit root test, cointegration test, F test,Hausman test, The panel model was finally determined, use the heteroscedasticity testingto modify the model, as the final results shows, all variables have significant correlationwith the debt maturity structure except the enterprise growth. Among them, all variables support the research hypothesis except state-owned shareholding and the proportion ofmanagement shareholding, these two are contrary to the proposed research hypotheses.About the political relevance of variables, in cross section analysis, no evidence can reflectthe correlation between political relevance and debt maturity structure, after introducingthe time factor, there has a significant positive correlation between political relevance anddebt maturity structure through the panel analysis. Thus in the long run, whether it ispolitical relevance or other variable, it can be affected by time factor during the enterprisedebt financing decisions.