Research On Correlation Between Executives Background And Corporate Debt Financing In China

Because of the recession in the real estate market, a lot of real estate enterprises appeared the situation of the capital chain rupture in 2014. As capital-intensive enterprises, the development of real estate enterprises have a close relationship with the different structure and choice of debt financing, also it will have a significant influence on the future value of the enterprises. On the other hand, the gender, age, background, professional, academic and other features of the executives also have a certain influence on their financing decision behavior and affect the enterprise’s debt financing options. The end result is that in the same industry environment, some real estate enterprises go bankrupt, while another part of the real estate enterprises survive and have a sustainable development.Based on this, this paper make use of upper echelon theory, debt contract theory, the theory of capital structure and debt maturity structure theory as the foundation of research. From the gender, age, government or bank background, professional, and education of the listed company’s executives, the article made some assumptions between executives background and corporate debt financing. The source of the data came from the 2011-2013 real estate listed companies, and through the variable selection, descriptive statistics analysis, correlation analysis and multiple regression analysis, finally the article got the following conclusion:First, the proportion of male executives in the executive team has the positive effect on the corporate debt financing structure. Second, executive team’s average age is negatively related to the corporate debt structure, and the executive team’s average age is positively related to debt financing time limit. Third, executives who have the background in government or bank always have the big advantage in corporate debt financing. Fourth, executives who owns the financial knowledge may have an positive impact to the corporate debt financing. Based on this, this paper puts forward the following Suggestions:(1) Optimize the gender and age structure of the executive team;(2) Increase the scale of the executive which own government or bank background;(3) Strengthen the executive team’s learning of financial knowledge.In this paper, the main innovations are as follows. Firstly, this paper have s research on Correlation between executives background and corporate debt financing in China, which will enrich the content of the upper echelon theory and improve the level of corporate governance. Secondly, this paper attempts to innovate on the pattern design, which make the study of debt financing of the real estate enterprises divided into corporate debt financing structure and time limit. Finally, in terms of data source, this paper selected the data of the real estate enterprises which are the listed company from 2011 to 2013, so that it will make the thesis research more timely.