Analysis Of The Influence Of CEO' Background Characteristics On Debt Financing And Firm Value

T The decision of capital structure is one of the core issues of modern theory of capital structure of the company,with the development of economy,enterprises are facing the business environment is more complex,on the operating performance of enterprises affect the capital structure decision of different enterprises are not the same.The top management of the enterprise is responsible for the strategic planning,formulation and implementation of the enterprise,and make decisions on investment and financing and resource allocation.Thinking and ability of different managers to deal with the problem,in the enterprise financing or other strategic decisions,managers will be their own unique style is applied to the enterprise,and bring different effects on business.Traditional financial theory is based on the assumption that managers are "rational people",and studies the influence of managers' capital structure decisions on firm performance and value.The implicit assumption is that managers are homogeneous,and the characteristics of managers do not affect the company's capital structure decisions.In 1984 Hambrick and Mason proposed the "upper echelons theory(Upper Echelons Theory),see managers because of differences in gender and education,age,working experience and beliefs of individual characteristics,to choose to have large differences in their behavior,and thus affect the behavior of corporate decision-making.Since then,a large number of scholars have supported this conclusion.This paper explains the capital structure theory,behavioral finance theory and upper echelons theory and studied the relevant research literature at home and abroad.The enterprise scale,the rate of return on net assets,the proportion of the first shareholder,growth,industry attributes,years make to regarded as control variables.While to build the system from the CEO variable background characteristics of enterprises,to CEO age,gender,education level,financial background,political background,overseas background and tenure of 7 indicators regarded as explanatory variables.And then take the corporate debt financing as explanatory variables,which design the business model about effect of CEO on debt financing background characteristics.Other way,it take the debt financing as explanatory variables and the enterprise value as the explanatory variables,which design to effect of the enterprise debt financing on enterprise value model;also it take the value of enterprises as the explanatory variable,the management characteristics,debt regarded as the explanatory variable,the financing and the intersection of the two parties are used as the explanatory variables,and the model of CEO background characteristics is used to study the influence of corporate debt financing on firm value.In 2008-2015 listed company data as the study sample,the relationship between the managerial background characteristics,corporate debt financing and enterprise value,analyzes the mechanism of the effects of CEO,the background characteristics of financing on corporate debt decision and enterprise value.The empirical results show that,the debt financing and corporate value are positively related,which means the enterprise debt financing have positive governance effect on corporate value.The background characteristics of CEO and debt financing have a relationship.It was including age,tenure and debt financing coefficient is significantly negative,significant positive correlation with other characteristics of debt financing.Some characteristics of CEO can significantly affect the corporate value through debt financing.To the summary,the debt is a kind of signal,it certain reference value for investors.And then listed companies in China should take the debt financing to reduce the conflict between shareholders and agents,agency costs,information asymmetry,also should be strengthening the supervision of managers,Next enterprises should fully consider the matching strategy planning the background,characteristics,personal preferences and enterprises in executive personnel selection,At the same time,establishing and improving the supervision of the executive incentive mechanism can full improve to the advantages of managers ‘background characteristics,Last supervision and prevention of adverse effects will cause by the enterprise management interests,improve the level of corporate governance.