Influence Of The Listed Company Governance Structure On The Cost Of Debt Capital

Listed companies play an important role in the socialist market economy of our country, In recent years, the debt capital occupies a large proportion of the capital structure of listed companies, The fact behind the huge amount of debt capital indicates that listed companies pay a certain cost of the debt capital each year. How to reduce the debt capital cost of company, we find that the corporate governance structure affects the cost of debt capital from factors affecting the cost of debt capital. The relationship between corporate governance structure of listed companies and the cost of capital has been pay attention by experts and scholars. Most of the experts and scholars have devoted to the study about the relationship between the corporate governance structure and the equity capital cost. But, the study about the relationship between the corporate governance structure and the debt capital cost is relatively small. Listed companies can be divided into state-owned listed companies and private listed companies according to the different ownership. The corporate governance structures are not the same in different companies, because the state-owned listed companies occupies an important position in the listed companies, The influence of corporate governance structure of state-owned listed companies on debt capital cost is worth the attention of the experts and scholars, In order to reduce the cost of debt capital, how to set the corporate governance structure in state-owned listed company scientifically and rationally worth the attention of the state-owned listed companies.This paper selected multiple indicators from the corporate governance structure of state-owned listed companies, we has carried on an empirical research about multiple indicators influencing on debt capital cost. First of all, in this paper, the concept of corporate governance and debt capital cost are defined. This paper introduces the corporate governance structure elements and the influencing factors of debt capital cost, we analyze the influence of governance structure of state-owned listed companies on debt capital cost theoretically on the base of Separation of ownership theory and information asymmetry theory to build hypothesis.Then we select data from the state-owned listed companies listed on Shanghai and Shenzhen in 2008-2012 as samples, Selecting various indicators from the ownership structure, board characteristics and the executive incentive mechanism,we carry on descriptive statistics, correlation analysis and regression analysis. By analyzing regression results we arrival at a conclusion finally and advise on how to perfect the governance structure of state-owned listed companies in China. The research results have a certain reference significance to our country state-owned listed companies about the design and management of governance structure.