The effect of the property structure on the company's debt financing

The paper empirically studies the relationship between debt financing and market valuation under the different property structures. We find that property right has a strong impact on the corporation's finance practices. The influence of the debt to the company value in the state-owned firms is rather faint than in the non-state-owned firms. It indicates that in order to increase the company value of the state-owned firms, debt financing should play an important role.