An Empirical Study on Relationship Between Governance Mechanism of Debt Financing and Corporate Comprehensive Performance

摘要

The relationship between corporate governance mechanism of debt financing and corporate comprehensive performance has been studied in this paper based on the financial data of 1110 listed companies. Effects of four approaches of debt financing mechanism working on corporate performance have also been analyzed thoroughly. It has been found out that,in most of the listed companies of China, functions of debt financing mechanisms are worsening. Among all of these four approaches,controller benefit's incentive mechanism and restrictive mechanism of free cash flow can help promote comprehensive performance by successfully inspiring shareholders' motivation to take part in corporate governance on one hand and restricting the possibility of managers' abusing free cash flow on the other. However,financial leverage's worsening and the failure of information transmission mechanism have weakened the positive effect of debt governance mechanism towards corporate comprehensive performance on the whole.