Impact Of Social Capital On The Corporation Financing Policy

In modern corporation finance theory, the company’s financing policy is very important for company operating. Financing policy not only influence the company cost of capital, but also is closely related to the company’s future operation and development, on the other hand, it plays a vital role in making full use of capital of company. This article reviews the domestic and foreign scholars research on traditional company financing policy, summarizing the researches of representative scholars before, in the meaning time, focus on the missing part of existing researches with reality, try to introduced the concept of corporation social capital to the research from two aspects, definition and measurement. On the basis of their researches, the paper tries to definite the concept of social capital and builds a measurement system for analyzing the relations between social capital and corporation financial policy.This article focuses on exploring the relationship between social capital and the capital structure and the relationship between social capital and debt maturity structure, listed on the Shanghai and Shenzhen Stock Exchange A-share listed companies during 2012-2014 data as samples which counting up to 1936.This article defines social capital as three levels, including entrepreneur, enterprise and regional level, trust as the core, the embedded relationship between enterprise and the external social network structure of the potential or actual resources collection. First of all, this paper measures social capital at micro, meso and macro levels by Factor Analysis to obtain the score of social capital. After multivariate regression analyzing, the paper finds the relationship between social capital index and financing policy.Finally coming to the conclusion:A corporation with more social capital can obtain a larger scale of debt financing which in a longer debt maturity. In this paper, in order to enrich the research about social capital (informal institution) impacting on corporation financing policy, meanwhile, helping cultivate social capital and make corporation financing decisions.