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Debt financing , a large creditor oversight and corporate governance
Author: LiuHui
Tutor: ZhuangZiYin
School: Wuhan University
Course: Western Economics
Keywords: Debt Financing Large creditors Regulatory Corporate Governance
CLC: F275
Type: Master's thesis
Year: 2005
Downloads: 355
Quote: 1
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Abstract
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This study focused on the company's bank debt financing external governance. Western research on corporate governance issues can be traced back three hundred years ago. Adam Smith (Adam Smith, 1776) in his book \Since then there have been scholars have discussed about the Hyundai separation of ownership and control the distribution of benefits arising from this idea. As the concept of corporate governance is really made around the 1980s, Western scholars have put forward and set off a case study of corporate governance climax. Corporate governance, internal governance and external governance of two mechanisms. In this paper, the relevant enterprises to banks for debt financing and supervision of large creditors are external governance mechanisms category. Debt financing can play a governance role is mainly through debt and about the fixed term to achieve. In this regard there are a lot of foreign literature discussion. In China, about 90 years of corporate governance research has only just begun, and with the recent decline in performance of listed companies, financial fraud, large shareholders have been hollowed out and a series of scandals occur, investors require increasingly calls for corporate governance higher. Banks and other financial institutions as a major investor, medium and small investors have greater than the advantage of the information and monitoring advantages, so they can be more effective oversight and governance. Large banks as creditors, investors should also be positive, \\vacancy, as well as China's legal provisions on corporate bankruptcy proceedings, all affect the governance of the debt constraint functions. Therefore, China's reality is that debt financing and foreign theoretical and empirical there are some differences. Chinese listed companies debt financing governance of listed companies is a \With empirical data confirm our theoretical perspectives. This incentive theory and econometric models with this issue in-depth theoretical analysis and empirical testing. Pointed out that the effect of debt financing can play on the premise that governance: the existence of a complete market mechanism and the legal environment. Text is divided into five parts. The first part is theoretical overview, focusing on the Western corporate governance as well as a large creditor debt management supervision theory about point of view.
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CLC: > Economic > Economic planning and management > Enterprise economy > Corporate Financial Management
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