Agency Cost,Institutional Ownership And Debt Maturity Structure Of Enterprises

Debt maturity structure is an important aspect of corporate financing decision.It can help to support the good business operation and management of enterprises.Debts with different lengths of maturity have different governance effects,and a reasonable debt maturity structure can help to enhance corporate value.Therefore,research on debt maturity structure is meaningful for the survival and development of enterprises.At present,there is widespread preference of short-term debt financing in enterprises in our country,and doing research on the issue also has some realistic meaning.Through the research,some references and suggestions can be put forward for further optimization on corporate debt maturity structure.This paper selects two aspects and studies their effects on debt maturity structure,one is the agency cost between the large shareholder and minority shareholders,the other is the proportion of institutional ownership.On the one hand,enterprises in our country have a widespread feature of ownership structure,which is called "one single large shareholder".Under the circumstance of relatively high equity concentration,the agency problem between large shareholder and minority shareholders has become the main agency problem in enterprises,which has a direct influence on corporate governance and corporate value.On the other hand,in recent years,institutional investors have achieved great development,and have become an important investing role in the capital market of our country.The governance effect of institutional investors has got more and more attention.Both the two aspects above can have effects on corporate governance mechanism,business operating efficiency and effectiveness and corporate value,and furthermore can influence the agreement of financing contracts between creditors and debtors.In this paper,agency cost institutional ownership and debt maturity structure have been put together in a unified research framework.In addition to the research on their respective effects on debt maturity structure,this paper also takes their combined effect on debt maturity structure into consideration.This paper tests the impact of agency cost and institutional ownership on corporate debt maturity structure,based on the data of main-board listed companies on Chinese A-share stock market from 2009 to 2014.The results are as follows:(1)the agency cost between the large shareholder and minority shareholders has significant negative influence on the debt maturity structure.(2)the proportion of institutional ownership has significant positive influence on the debt maturity structure.(3)under the combined effect of agency cost and institutional ownership,the increase of agency cost will restrain the positive influence of the proportion of institutional ownership on debt maturity structure.According to the analysis results,here comes the conclusion that it is beneficial to improve the ownership structure and to develop the institutional investors,when it comes to forming a reasonable corporate debt maturity structure.