| Since the outbreak of COVID-19 epidemic,all walks of life are facing a very tough situation.Especially,the leading enterprises defaulted frequently in the real estate industry,which damages the homebuyers’ confidence deeply.In addition,it may cause a certain impact on the stability of China financial system.Despite there are some negative factors in the economic,why the real estate enterprises default frequently is an issue that is worth to ponder.Previously,scholars studied the investment data and operation data of enterprises to find an answer why they are default on debt.However,it is not the real root cause.Therefore,it is urgent for us to find the root cause and take current measures,which are helpful to address predicament of real estate industry.This paper selects the property developers listed in Shanghai Stock Exchange and Shenzhen Stock Exchange during 2010 and 2020.The measure of debt default risk is determined by comparing the Z value and the default distance.Corporate governance indicators are constructed by characteristics of the board of directors,management incentives and equity structure.The Dibo internal Contorl Index is used to represent the quality index of internal control.In the last,a multivariate linear model is constructed to anlyze how the corporate governance influences the risk of debt default.And taking tests verifies wheather internal control plays an intermediary role between corporate governance and the risk of debt default.The following conclusions are drawn by empirical anslysis.First,the corporate governance is related to the risk of debt default.Increasing the proportion of independent directors and the equity restriction ratio will helpful to reduce the risk of debt default,while increasing the shareholding ratio of management and ownership concentration will further increase the risk of debt default.In addition,the size of the board of directors and the remuneration of management are not significantly related to the risk of debt default.And the research shows that the risk of debt default of state-owned enterprises is significantly higher than that of private enterprises.Second,there is a significant relationship between the corporate governance and internal control.Improving the quality of internal control could reduce the risk of debt default.Further more,the quality of internal control plays a partial mediating role where the proportion of independent director,shareholding ratio of management and ownership property impact on the risk of debt default.According to this paper,some targeting suggestions could be provided to avoid the risk of debt default in the real estate industry.The enterprises could take relevant measures to increase risk-resistance capacity.There are adjusting the structure of the board directors,optimizing the incentive system,improving the equity structure and strengthening the construction of the internal control system. |
