Research On Executives' Social Capital,institutional Environment And Corporate Debt Default

In 2014,China's first bond of material default occurred,which completely broke the myth of "rigid redemption".The default of "11 super-day-debt" caused huge losses to bond investors.Then a series of debt defaults broke out in China,which caused a major impact.At present,China is in the downward phase of the economic cycle.Most enterprises are under pressure from de-leverage and excess capacity,and the operation is facing great difficulties.The tight capital chain leads to an increase in debt default events.With the increase in the scale of corporate debt,the impact of debt defaults has become more widespread,restricting the healthy and sustainable development of China's economy.This thesis studies the relationship between executives' social capital and corporate debt default,and further tests whether the strength of institutional environment in different regions will affect the relationship between executives' social capital and corporate debt default,hoping to find out the factors affecting debt default,so as to make recommendations for reducing the probability of corporate debt default.This thesis uses a combination of theoretical analysis and empirical analysis.Based on the research of scholars at home and abroad,this thesis analyzes the relationship between executives' social capital,institutional environment and corporate debt default around embedded theory and social capital theory.This thesis manually collected 115 samples of material debt defaults between 2014 and July 2018.This thesis empirically tests the full sample data including bond default,bank loan default and commercial credit default through logistic regression,and conducts group test on bond default and bank loan default.The empirical results show that the executive social capital consisting of seven dimensions,such as bank association and market association,can reduce the probability of the company's debt default,the richer executives' social capital,the smaller the probability of debt default,and the further consideration of the institutional environment,in areas with high levels of marketization,the role of executive social capital in reducing the company's debt default probability is significantly weakened.In order to ensure the reliability of the conclusion,the thesis uses the debt default probability as the surrogate variable of debt default,and uses the natural logarithm of the population of the province where the company is located as the surrogate variable of the independent social network to conduct the robustness test,and the conclusions are consistent.In view of the above conclusions,this thesis makes the following recommendations.First,investors can pay attention to the position of senior executives of corporate financial reports,and understand the executives' social capital of enterprises to avoid unnecessary losses.Second,enterprises can attach importance to the establishment and maintenance of their executives' social capital.The more executive social capital a business has,the less likely it is that a debt default will occur.Third,the regulatory authorities can improve the debt financing supervision system and optimize the debt financing management system.