China's Private Listed Company's Capital Structure

The theory of corporate capital structure has been in focus by economic circles since MM theorem was born. In the light of theories of modern capital structure, selection of corporate capital structure will influence utilizing efficiency of corporate capital, asset values, governance structure whereby influence corporate achievements finally; but according to the mainstream theory of modern capital structure, optimum finance sequence is inside finance, debt finance and equity finance.The financial way of listed companies in China has been in focus eyed by the public in recent years. A relatively unanimous researched conclusion derived from quite a few study achievements is that, in China, listed companies generally prefer equity finance, which means they will choose the scrip issue or the increasing issue in the financing process for the first time; if in no accordance with qualifications of the scrip issue or the increasing issue, listed companies will choose convertible bonds that have characteristics of delaying equity finance, and then through setting loose convertible clauses to promote investors to transform, the companies accept equity finance; at last, they have no alternative but to choose debt finance.It is obvious that there exist conflicts between finance sequence of listed companies and theories of western capital structure. Academic circles mainly follow institutional factors including equity structure, stockholder structure and capital market and so on to discuss and study the conflicts. But we think we can not neglect a factor called corporate property institution though other institutional factors were indeed the main factors that influence capital structure of listed companies. In the theory of western capital structure, its micro-subject is private-owned companies whose trait is to purse maximization of profits and enterprise values. When they are going to finance, the private-owned enterprises must consider financing costs first. Because decision rights of refinance in the state-owned listed companies are controlled by agents of state-owned equity in fact and state-owned assets do not belong to agents themselves, the most divergent nature between state-ownedcompanies and private-owned companies is that the agents of state-owned companies do not seek maximization of corporate values. They do not consider costs of equity finance and items earnings directly to reach the goal that is maximization of controlled rights. When they want occupy more assets, it is inevitable to continuously refinance.Since property nature is one of the most principal factors which influences listed companies' capital structure, we must study the capital structure of the civil-owned listed companies. Nowadays, the civil-owned listed companies have relative proportion in all listed companies and meanwhile they solve the predicament of owner vacancy compared to the state-owned listed companies. So there exist some problems that need systematically study on the basis of theories.Do the civil-owned listed companies care about optimization of enterprise capital structureDoes capital structure of the civil-owned listed companies possess reasonability?Is there relationship between the capital structure and enterprise merits of civil-owned listed companies?In the key stage of development of China's capital market, researching capital structure of civil-owned companies is not only of theoretical significance but also of practical significance. On one hand, its theoretical values are in providing theoretical foundations to support to decrease state-owned equity; on the other hand, its practical significance is in stipulating financing behavior of civil-owned listed companies, promoting efficiency of corporate governance structure, pushing civil enterprises to advance and optimizing deploying efficiency of social economic resources.The dissertation can be divided into four parts. The first part which is represented in the second chapter aims to ram foundational theories for studying the capital structure of civil-owne...