The Influence Of New Bankruptcy Law On Listed Companies' Debt Financing Governance

This article takes a sample of A-share private listed companies that were financially distressed from 2003 to 2016,establishes a model and adopts a regression method from the nature of property rights,total debt,debt maturity(long-term and short-term),and debt sources(bank deposits).The aspect test of debt financing exerts the effect of bankruptcy threat and then influences the performance of the company by suppressing excessive investment(inefficient investment).The study finds that private listed companies in financial distress in China are generally over-invested.Debt financing can generally suppress over-investment and exert the effect of debt camera governance.Short-term debt can suppress excessive investment in private listed companies that are in financial difficulties.Debt management effectiveness,while long-term debt due to a very small proportion of the debt maturity structure,has failed to influence inefficient investment behavior.