Capital Structure Choice Of Transition Economics

This dissertation, based on the dissipative structure theory in the natural science, attempts to explore the capital structure choice of the enterprise that is under the circumstance of transition economy. It first puts forward a unique analysis method of transition economics and uses it to explain the evolvement of Chinese enterprises' capital structure choice. Then it is devoted to establishing a dissipative structure model of enterprise's capital structure choice in the transition economy. Finally, it brings forward some proposals for optimizing the enterprises' capital structure following the analysis logic of 'objective-behavior-efficiency'. The main content of the dissertation consisting of six chapters can be generalized as follows:Chapter one introduces the present capital structure choice theories, founding on the equilibrium analysis method, including traditional theory, modern theory and contracts theory that respectively use the marginal analysis, the general equilibrium analysis, game theory and information economics analysis method. The object of above theories is the capital structure in a certain time or in a short period of time, that is, those theories focus on being not becoming, which is an enterprise's capital structure in a long period of time.Chapter two analyzes the limitation of equilibrium analysis method and the present capital structure choice theories. The equilibrium analysis method is deeply affected by the linear thought of latter-day mechanics and emphasizes the independence, symmetry and uniformity of economic factors. So it is applicable for the mature and stable economic conditions. Since this is not always true in practice, equilibrium analysis method has certain limitations, which cause the imperfection of present theories. The imperfection is expressed by the diversity of empirical results and the absence of authoritative analysis method. What is more, many becoming phenomena can not be well explained.Chapter three puts forward the transition economy method by introducing the dissipative structure thought. The thought thinks that an open system far from equilibrium will constantly exchange substance and energy with its environment, give rise to the phenomenon of self-organization by the mechanism of coherence, non-uniformity and asymmetry, and finally evolve from disorder to order in the form of 'eat and flow'. Since the transition environment can be deemed as an open system similar to the dissipative structure, the transition economics analysis method is such a method that to start to analyze the transition economic system from those dissipative structure characteristics such as opening, non-linearity and self-organization.Chapter four adopts the analysis method of transition economics to explain the evolvement of capital structure choice of Chinese enterprises. Because capital structure choice can be comprehended as a kind of behavior that the enterprise chooses its capital structure by the capital formation mechanism, we can make clear the reason why capital structure choice of Chinese enterprises is far away from equilibrium by analyzing the imbalance of capital formation mechanism and the self-organization characteristic of enterprise behavior. Because all the information that leads to market-oriented capital structure choice can be thought of as a series of negative entropy and the inflow of them will work through different kinds of nonlinear mechanisms, the evolvement of capital structure choice of China enterprises can be interpreted as a process from disorder to order in the form of eat and flow that is promoted by all the nonlinearmechanisms.Chapter five combines the present capital structure choice theories with the analysis method of transition economics, establishes a dissipative structure model of capital structure choice, then makes an empirical test of the model. After the tax advantages and the cost of financial distress are reinterpreted by the nonlinear mechanism, the market model of the present capital structure choice theory (taking...