Abstract-This paper deduces: when the current final liquidate residual of a project is greater than the next period of expected revenue, investors will choose short-term debt and take it as supervision on managers; under the corporate debt maturity structure option game equilibrium between managers and shareholders, the higher the corporate governance level, the better the legal system environment, and the lower the corporate debt level, the more effective will be the restrict of management entrenchment effects. In addition, this paper adopts data of Chinese listed companies of 2008-2009 for empirical test, and this empirical results support the theory and assumptions in the paper.
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