Abstract
Based on the relationship between debt financing and corporate governance, the paper makes an empirical study on the relationship between debt financing and private benefit of control (PBC) of listed company in China. The findings are as follows: Firstly, considering the special ownership structure in China, debt financing governance effect is dispositive, the effect of debt financing on corporate governance and agency cost of substantial shareholder is insignificant; Secondly, special ownership structure in listed company has insignificant adjustment on the relationship between debt financing and PBC; Finally, the first and largest shareholder equity ratio is essential to PBC, the influence of other big shareholders’ restriction in reducing the effects of PBC is not significant.
This paper is Funded by MOE (Ministry of Education in China) Project of Humanities and Social Sciences (Project No. 10YJC630137).
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Preview
Unable to display preview. Download preview PDF.
References
Dyck, A., Zingales, L.: Private Benefits of Control: An International Comparison. Journal of Finance 59, 537–600 (2004)
Johnson, S.R., Florencio, L.S., Shleifer, A.: Tunnelling. American Economic Review 90, 22–27 (2000)
Shleifer, A., Vishny, R.: A Survey of Corporate Governance. Journal of Finance 52, 737–783 (1997)
Tang, Z., Jiang, W.: A Study on the Expropriation Degree of Large Shareholders of China’s Listed Companies. Economic Research 4, 44–50 (2002)
Ye, K.: A study on the return of corporate control-—exchange of non-circulation shares in China. Economic Science 5, 61–69 (2003)
Wang, H.: Debt financing, corporate governance, market value of listed companies. Economic Research 8, 28–36 (2003)
Huang, Z., Bai, Y.: The Listed Companies’ Liabilities Behavior, Shareholders’ Wealth and Stock Market Effect. Economic Research 7, 49–57 (2002)
Lin, C., Liu, X., Hao, Y.: Industrial Characteristics and private benefit of control: an empirical study from listed companies in China. Economic Science 3, 61–72 (2006)
Author information
Authors and Affiliations
Corresponding author
Editor information
Editors and Affiliations
Rights and permissions
Copyright information
© 2012 Springer-Verlag GmbH Berlin Heidelberg
About this paper
Cite this paper
Lin, C., Liu, L., Shen, H. (2012). Dose Debt Financing Has Positive Governance Effect?. In: Zhu, M. (eds) Business, Economics, Financial Sciences, and Management. Advances in Intelligent and Soft Computing, vol 143. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-642-27966-9_58
Download citation
DOI: https://doi.org/10.1007/978-3-642-27966-9_58
Publisher Name: Springer, Berlin, Heidelberg
Print ISBN: 978-3-642-27965-2
Online ISBN: 978-3-642-27966-9
eBook Packages: EngineeringEngineering (R0)