THE RELATIONSHIP BETWEEN GOVERNANCE OF CREDITOR'S RIGHTS AND PULLULATION IN CHINESE SMES BASED ON A FACTOR ANALYSIS

摘要

The governance of creditor's rights serves as a significant part in the corporate governance system. Together with equity governance, they form the two wings of the governance of corporate assets. Based on the review of literature at home and abroad, this paper constructs the evaluation index of the governance of creditor's rights of the listed small and medium enterprises (SMEs) in China. It makes an empirical study on the creditor's rights governance of a sample of 280 Chinese listed SMEs from four dimensions, namely, solvency, debt financing, assets maturity structure and debt maturity structure. Meanwhile, by adopting the growth rate on net assets to signify the pullulation of the listed SMEs, this paper makes a Comprehensive and Regression Analysis on the two evaluation indices. The results indicate that the overall governance of creditor's rights is comparatively poor and the governance of creditor's rights and the pullulation present an inverted U-shape. High solvency and low debt financing are both deterrent to enterprise growth, while debt maturity structure and assets maturity structure do not impact the pullulation significantly. The size, quality and effective income tax rate are the most important features that can influence the governance and pullulation.