Study on Debt Financing and Corporate Governance of Chinese Private Listed Company

摘要

Using Debt Financing Ratio as independent variables to interpret the dependent variables of TOBINQ and MBR, this paper tests the hypothesis that debt financing can increase the market value in private listed companies in China. The empirical results show that the debt financing has a certain effect on corporate governance in private listed companies in China, and that debt financing is positively correlated with market value. Further analysis shows that the debt financing in private listed companies need improvements.