The Impact Of Political Relations And Social Trust On Private Enterprises Debt Maturity Structure

While our national economy is in a transition period, private enterprises are facing thespecial financing environment. Many private enterprises face the financing difficulty, highershort-term debt, larger liquidity risk. So, the domestic scholars pay attention to the research ofprivate enterprises debt maturity structure. With the improvement of private enterprises socialrelationship structure, its business activities will be more involved in its social relations, theybegin to rely on some alternative informal institutions and mechanisms to support thedevelopment of enterprises, such as political relations and social trust. Therefore, it isindispensable to study the impact of political relations, social trust on private enterprises debtmaturity structure.This paper using the normative research approach defines the concept of debt maturitystructure, social capital, political relations. Based on the theory of rent-seeking theory, politicalparticipation, government intervention theory, we analyse the impact of political relations,social trust on debt maturity structure of private enterprises and deeply discuss the mutualreplacement between political relations and social trust on the influence of private enterprisedebt maturity structure. This paper is based on the Shang hai and Shen zhen2010-2012privatelisted companies as the research object. We select the long-term debt ratio as explainedvariable, political relations and social trust as explanatory variables. Using Excel2010, Spss17.0for data processing, statistical analysis, screening, we test the impact of political relations,social trust on debt maturity structure of private enterprises and the mutual replacementbetween political relations and social trust on the influence of private enterprise debt maturitystructure with the linear regression. At the end of this paper, the regression results are alsodescribed.In this paper, the empirical results show that there is a significant influence from thepolitical relations and social trust. Compared with private enterprises of no political relations,there is higher proportion of long-term debt to total debt in private enterprises of politicalrelation; With higher level of social capital, the firm can get more long-term debt; Both thepolitical relations and social trust can jointly promote private enterprises to obtain long-termdebt, if the firm has political relations, social trust is inclined to make a stronger effect on theprivate enterprise debt maturity structure.