The Relationship Between The Board Social Capital And Enterprice Financing Preference

Financing problem is the core problem in the process of enterprise op eration. As it is well known, corporate finance is divided into internal financing and external financing. For many enterprises, external financing is a better way than internal financing to solve their problems of financial shortage. According to the Opti mal Financing Order Theory, enterprises are usually preferred to debt financing as their main way of external financing.Debt financing behavior is actually a principal redemption commitment and money exchange behavior. It needs bilateral trust and deep relationship between debtors and creditors. However, as a result of the market participant’s information asymmetry, the influence of transaction cost and other factors, the requirement of debt financing is difficult to meet frequently, and this also causes enterprise financing constraints. Today, it is shown by many studies that both at home and abroad, the board of directors of social capital, is an important factor, which affects corporate debt financing. It can effectively solve the problem of financing constraints. The board of directs can utilize social networks, trust and legitimacy of scarce resources, the enhancement enterprise with external economic main body of communication and exchanges, effectively relieve enterprises and external environment of the information asymmetry problem, promote debt financing and reduce the cost of financing. Research in our country, therefore, the board of directors of the listed company social capital and the enterprise financing preference relations, to be able to understand the importance of social capital to enterprise development, the board of directors for the board of directors of the enterprise mining the internal advantage, realize the rational allocation of resources is of great significance.Today, the board of directors in the enterprise is valued more and more by professionals and scholars. How to realize better corporate governance has become a hot issue there is a growing concern. In this paper, under the background of textile and clothing industry, enterprise financing preference as the breakthrough point, to study the value of the board of directors of social capital. This article from the connotation of the social capital theory to explore the board of directors and, in the aspect of empirical test boar d how social capital affects the debt financing scale and the selection of maturity structure of debt financing. In corporate finance perspective study the laws of social capital operation, the board of directors to the board of directors of the listed company in our country in terms of qualifications and the allocation of resources for the construction of the proposed reliable theoretical support.This article in to the board of directors of social capital, enterprise financing preference, on the basis of a review related literature review, first define the relevant concepts, the board of social capital is divided into two measure government and bank relationship, and to determine enterprise’s debt financing as a research starting point, combing the board relationship between social capital and the choice of corporate debt financing and its mechanism of action; Secondly, put forward the research hypothesis, building model, define variables, and the textile and garment industry in 2010-2014 listed companies as the research sample; Then, will the board of directors of social capital is divided into government and banking background two dimensions, respectively to investigate its scale and maturity structure of debt financing on corporate debt financing; Finall y, according to the research conclusion put forward board member qualifications and resource configuration optimization Suggestions.In this paper, the results show:(1) China’s textile and apparel industry public companies’ debt financing deadline proportion is mainly composed of short-term debt financing and it is low for medium and long term liabilities;(2) the board of directors of social capital can promote enterprise debt financing;(3) the board of directors of social capital is the impact of corporate debt maturity structure choice is an important factor, the stronger the board of directors of social capital, the more debt financing a lot;(4) the social relevance of the board of directors, the bank correlation relationship with the government influence on corporate debt maturity structure differences, among them, the bank of the board of directors and the stronger affinity, the more debt financing a lot; The board of the stronger the relationship among the government, the more long-term debt financing.