The Impact Of Political Connection On The Choice Of Debt Restructuring Creditors

Debt restructuring as an efficient and low-cost way to alleviate the financial crisis,the majority of enterprises adopt the method and the study about impact of factors such as the relevant research is also increasing.Among the various factors influencing the debt restructuring,the political association has been paid close attention by the majority of the scholars.This paper is based on the research on the factors influencing the debt restructuring,and the influence of the political connection on the debt restructuring is also discussed.At the same time,the debt restructuring size of the debt restructuring with banks is analyzed to determine whether the political connection has affected the extent of bank concessions.Finally,this paper considers whether the role of political association in the choice of debt restructuring creditors in different financial ecological environments.Based on former study and the analysis of the A-share listing data in 2007-2015,this paper explores the relationship between political connection and the choice of debt restructuring creditors,based on the study of political association and debt restructuring,combined with the different evaluation of financial ecological environment in different regions,the conclusion is that the politically related companies tend to carry out debt restructuring with banks and the higher the degree of political connection,the greater the possibility of choosing banks as their debtors;companies which highly political connected tend to lead smaller restructuring size;In the different financial ecological environment,the political connection has different influence on the choice of debt restructuring creditors.In the areas where the financial ecological environment is better,the role of political connection is strengthen,and where the financial environment is poor,the role of political relations has been weakened.It can be seen that the rational use and effective control of the political connection of enterprises have an important impact on corporate debt management and how to get rid of financial distress.At the same time,the different effect of political connection in different financial ecological environment also provides a new governance angle for the supervisory department to deal with the financial fraud of the enterprise by using the debt restructuring,and also provides a new theoretical idea for the development of the financial ecological environment.