Research On Capital Structure Of Chinese Agricultural Listed Companies

Agriculture has the fundamental status in China. Agricultural industrialization is the important way boosting agriculture modernization. The agricultural listed companies are the lead of agriculture modernization. View based on the agricultural listed companies, a problem have to face is the worse performance and governance power. The improvement of performance and governance level can not divorce from capital structure. It has important meaning for improving the performance and governance level of agricultural listed companies to discuss the determination factor of capital structure, to analysis the relation between capital structure and performance or corporate governance, and to discuss the countermeasures for the capital structure optimization of agricultural listed companies.The theory bases of this article are the agency costs theory and the pecking order theory. This article combines the normative method with positive method. It analyzes the current status of capital structure of agricultural listed companies by descriptive statistics method. It tests the difference between agricultural listed companies and other industries'listed companies by the method of Kruskal-Wallis and Tamhane's T2. It finds the influence factors of capital structure by cross-tabulation method. It analyzes the affect of performance to capital structure by panel data model and discusses the effect of capital structure to performance by regression method. It examines the relationship between capital structure and corporate governance by method of logic. It discusses the corrected apply of financial risk warning model which has ensure function to optimize capital structure by the method of statistics classifying.The main conclusions are as follows:The debt-asset ratio of agricultural listed companies rises steadily for a long time. It is lower than the other industries whether the listed quantities or the raised money of agricultural listed companies. The current liability to asset ratio of agricultural listed companies is more than the non-current liability to asset ratio and it determines that the financing risk of agricultural listed companies is more than the average of all listed companies. It is found that the non-current liability to asset ratio of agricultural listed companies stay in the middle of twelve industries', while the current liability to asset ratio at the bottom. The test result shows that the notable difference in capital structure exists widely in different industries. The frame of financing can not prove that the listed agricultural companies have the preference of stock issue. Loan financing is the mostly main mode of financing.The influence of yield, scale, growth, non-liability tax shield and asset secured value are tested by cross-tabulation method. The main factor influence the capital structure of agricultural listed companies is the scale of assets.The effect of empirical analysis shows that there is no proof of the relation of long-term liability asset ratio to the rate of return on common stockholders' equity in the current period, and to the rate which has a time lag of one period or two periods. Liability asset ratio has a negative correlation to the rate of return on common stockholders' equity as well as the current liability asset ratio. Regression method is used to analyze the influence of capital structure to corporate performance. It shows that the rate of return on common stockholders' equity has significantly negative correlation to the liability asset ratio in some years if use the linear model. It is discovered that there is significantly quadratic correlation between liability asset ratio and the rate of return on common stockholders' equity in some years when the quadratic model is used. So the optimal capital structure can be found according as extremum theorem in these years. If the stepwise model is used, the analysis effect reveals that the explanatory variables of the rate of return on common stockholders' equity are incompletely same in every year while the current liability asset ratio is imported the most frequently.The tradable share proportion of agricultural listed companies has increased quickly after reform of non-tradable shares. The share proportion of the largest shareholder as a whole is falling but the equity ownership concentration still keeps high. The status that one share dominates exclusively makes the interest conflict of stockholders deeper. There are faults in the executive ownership incentives of agricultural listed companies. The intentions of directorate and supervisory board to supervise handlers are not realized goodly. The debt ownership capital of agricultural listed companies has not brought the function of inspiriment and bankruptcy restriction into play. The high proportion of current liability to total liability means that loaner governance is absent.The object of capital structure optimization of agricultural listed companies is shareholder wealth maximization. It is necessary to strengthen the financing consciousness, improve the corporate performance, keep the risk away, get into debt within measure, and optimize the corporate governance structure to optimize the capital structure of agricultural listed companies.