| Abstract: | This paper mainly discusses the control-ownership wedge of private listed companies in China and
the choice between bank debt and public debt. The article takes China''s private listed companies panel data as sample
and uses multiple regression analysis. The study found that the greater the degree of the control-ownership wedge,
corporate debt financing more inclined to bank loans; when the information asymmetry is lower and the information
transparency is higher, companies tend to choose public bonds, the agency problems caused by a larger degree of the
control-ownership wedge will be weakened. The conclusion is consistent with the efficient market theory. |
