Empirical Study on Government Trust and Its Impact on Corporate Credit Structure

The paper, starting from the history of government trust in China, studies how government trust has been transferred into government credit by the help of the state assets as a hidden guarantor under the present state property rights mechanism. As a symbol of the government trust, the state-owned share proportion is employed to study its impact upon commercial credit, bank credit and security credit of the listed corporations. The empirical result reveals that government credit has produced a certain degree of impact upon corporate credit structure and that the various directions and degrees of the impact have approximately matched our hypotheses