Chinese Listed Companies In The Financing Structure, Ownership Structure And Corporate Governance

The discussion of Chinese listed companies concentrates on ownership structure and corporate governance. According to classic western theories, financing structure influences and decides corporate governance. However, the practices of present Chinese listed companies deviate from this law. Starting with financing structure, these dissertation first comments on classic western financing structure theories and analyze the factors that affect corporate financing. Then it holds that Chinese practices depart from theories through exploration of the financing structure of Chinese listed companies. It further discusses the inter-relationship between financing structure and corporate governance and studies that between ownership structure and operating performance through empirical approach. Finally, it proposes that perfection of corporate governance lie in optimizing ownership structure, and concludes with corporate governance. This body is divided into eight chapters as follows.Chapter One serves as the introduction. It introduces the purpose of this topic, related definitions, research method, structure, and main points of the dissertation.Chapter Two reviews financing structure theories. It brings in main financing structure theories, such as Durand theory, MM theory, Trade-off theory, and Informational asymmetry theory and illustrates and comments on their basic viewpoints, propositions, and related hypotheses. Although they possess considerable theoretical value, they are subject to challenges from practice now and then. Generally speaking, they are far from perfection.Chapter Three compares different financing sources and makes the choice. It categorizes business financing modes from three perspectives, comparing and analyzing internal and external financing, direct and indirect financing, equity financing and debt financing. It explains two typical financing modes in foreign countries: market-oriented and bank-oriented modes. Through comparing andanalyzing, it concludes that these two modes have their own characteristics, advantages, and limitations. Judging from the forming and developing of these two modes, corporate financing is subject to the influence of such factors as economic structure, financial economic structure and economic development.Chapter Four analyzes the status quo of Chinese listed companies. Based on ample data, it explains that Chinese corporations have a low ratio of internal financing. External financing and stock financing are preferred, which deviates from financing structure theories and foreign corporate financing modes. The preferences are attributed to relatively low financing cost and unreasonable ownership structure. It holds that preference of stock financing does not help to lower financing cost, exploit financial leverage, and reasonably allocate social resources. It also puts forward some measures for the perfection of the financing structure of Chinese listed companies.Chapter Five first focuses on the relationship between financing structure and corporate governance. While it is influenced by such environmental factors as culture and law, modern corporate governance is shaped on the basis of financing structure. The emergence and characteristics of external and internal supervising corporate governance are then explored. From historical point of view, they are closely related to different financing modes and have their own strengths. Looking forward, they are both transforming and showing a trend towards convergence.Chapter Six presents empirical study of ownership structure and operating performance of Chinese listed companies. It analyzes their relationship through multiple linear regression and other methods on the basis of the pooled data of A share listed companies from 1994 to 2001. The conclusions from this empirical study are as follows: Stock ownership concentration CH5 and operating performance show U shape; Ratio of state-owned shares is negatively related to operating performance; Ratio of corporate shares is positively related to ope...