Product Market Competition, Company Internal Governance And Credit Risk

The credit risk of listed companies has always been the subject of wide attention in the capital market.The default wave in the bond market in 2018 has exposed the internal management problems of many enterprises,which makes credit risk become a factor that investors must consider before investing.At present,the research on the impact of corporate governance on credit risk mainly focuses on the internal,which has some limitations in the study of the external.The theoretical significance of this paper is to study the influence of corporate internal governance level from an overall perspective by constructing the index of corporate internal governance level.By introducing the research on the influence of product market competition on credit risk,discuss the direct influence of product market competition on credit risk and its regulating role in the process of internal governance on credit risk.This paper selects the data of A-share listed companies from 2013 to 2017 to empirically study the influence of corporate governance on credit risk.The conclusion is as follows: the higher internal governance level,the lower credit risk.Among them,the state-owned property rights,the scale of supervisors and the senior executives are significantly negatively correlated with credit risk.The combination of chairman and CEO is positively correlated with credit risk.The influence of the largest shareholder's ratio and the equity balance degree and the level of executive incentive on credit risk is different in the listed companies with different property rights.There is no direct relationship between product market competition and credit risk,but it has a regulating effect on the affecting process.To this end,we should promote the diversification of ownership structure;Improve the capacity of internal governance institutions;Increase executive compensation incentive and other measures to improve the company's internal governance level.In addition,product market competition plays a role in external governance through information disclosure and pressure transmission.We should pay attention to the regulatory effect of product market competition in the process of corporate internal governance to reduce credit risk.