Chairman's Collectivism And Corporate Long-term Debt Financing

Based on the panel data of Chinese listed companies spanning the period 1999-2014,using the native place of the chairman to measure his or her culture type,and the long-term debt ratio and the debt maturity structure to measure the corporate's long-term debt financing,this paper is mainly to test how the chairman's collectivism affects the corporate's long-term debt financing,and the conclusions are as follows.(1)Chairman's collectivism significantly influences the choice of corporate's debt financing,the chairman under collectivism will use more long-term debt and choose longer debt maturity structure.(2)In the state-owned enterprise or the enterprise whose board of directors is bigger,the relationship between the chairman's collectivism and the long-term debt ratio and the debt maturity structure is enhanced.Based on the Rice Theory proposed by Talhelm et al.(2014),this paper makes use of the natural advantages of cultural differences in the wheat areas and rice areas in China to study the impact of culture on long-term debt financing,eliminates the interferences of macro-level factors such as national legal systems,accounting policies in existing studies.Not only can this paper expand the relevant literatures about the relationship between culture and capital structure,which helps us to understand the formation of the capital structure from the culture perspective,but also can provide guidance for Chinese listed companies to improve corporate governance,finance decisions and establish a more perfect modern enterprise system.