Dose Debt Financing Has Positive Governance Effect?- An Empirical Study Based on Private Benefit of Control

摘要

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.