Marketization Of Banking System, Debt Contract And Excessive Employment

The presence of excess employees in our country has always been one of the importantfactors that restrict enterprise development,especially in state-owned enterprises excessemployee problem is more outstanding. According to the rules of market development,companies tend to adjust the number of hiring as the standard with the profit maximization,but companies with excess employees distributary will cause huge employment pressure tothe society, leading to a rise in unemployment. For the government, the employment rate haslong been used as a one of the important goals of performance appraisal, compared with thefinal control for private listed company, ultimately control for state-owned listed companiesby the degree of government intervention. This article, firstly, studies from the changes ofmacroeconomic environment, combining with the listed company governance mechanism,and studies the effect of banking sector marketization on the enterprise contract, then wefurther test the correlation between excess debt maturity and enterprise employees.This article selects all a-share listed companies in2005-2012except the financialinsurance industry, and the time span is8years by using the large sample regression. Themain reason is that in order to more accurately describe the process of marketization of thebanking sector, debt contract with excess employees of the relationship between enterprises.On this basis, according to the final humanity quality control, sample can be divided into twoclasses of grouping test, the results showed that relative to the non-state-owned holding sharesof the listed company, the final control for state-owned enterprises listed companies debtmaturity more excess the sensitivity of the employees of the enterprise.In this paper, we found that marketization of the banking sector significantly affected thelisted company’s debt contract, when the banking marketization index is higher, the region’sfinancial institutions because of the lost part or all of the government relations, long-term debtfinancing transaction costs will be higher risk bigger, in order to reduce risk, financialinstitutions, such as Banks tend to provide short-term loans to listed companies, so the higherthe marketization of the banking sector, the shorter debt maturity is; For listed companies, onthe other hand, the shorter the debt maturity, the greater the liquidity risk faced by firms, andenterprises are more sensitivity to the cost requirements, so companies will reduce Labourcosts by reducing excess employees;this paper, the research shows that, compared with the final control for non-state-owned listed companies, in the actual control for state-owned listedcompanies, the government often use administrative means to influence the hiring decisionsof the enterprise, such as the government to reduce the rising unemployment, bring all sorts ofmalpractices, will tend to use their political relations to affect the employment behavior oflisted companies, leading to the final control for state-owned listed companies exist in thehigh employees.