Cash Flow Right and Debt Maturity Decision —Evidence from China’s Listed Family Companies

摘要

Current research confirms the existence of ultimate shareholders, and this paper examines the relationship between ultimate shareholder control and debt maturity decision by using the panel date of 303 listed family companies from 2007 to 2009 in China. The result shows: as the separation of the controlling right and cash flow right increases, the firms prefer to adopt debt financing so as to expand the size of controlling resources; what’s more, these companies tend to increase the longterm debt, because the short-term debt, owing to the external supervision effectiveness, limits the ultimate shareholders to get access to gain private benefits.