Corporate Governance Structure Of Chinese Listed Companies' Capital Structure And Financing Of The System

On the basis of mutiple economics and managemental theories, adopting this means which the theorical demonstration is the leading way and put the theorical demonstration and empirical analysis together, making the system main clue, this dissertation emphasizes on systematic research on the core proposition, which is that the improvement of the capital structure of Chinese listed corporations and financing means will prmomotes the governing performance of state enterprises and leads to the fine disposition of Chinese financial resources. This paper includes ten parts.Part one: This part fisrtly puts forward the differences between some basic concepts and the problem which will be studied. prcceding from the present study state to capital structure in the world ,it states that fiancing system is the key point,and it further raises the meaning, the main contents , the logic structure and the main innovational attitudes of this study.Part two: This part comprehensively introduces the theories of capital structure and their basic attitudes , including the new development on this issues. It states that every theory have its own conditions, and different theory would give different tactics as a result of its emphasizeing different cost. When explaining Chinese reality by some theory, we should firstly observe whether Chinese realitic environment fit the structure and the conditions of this theory. Comparatively speaking, I hold that Liquidity theory and Windows of Opportunity fit the present states of Chinese listed corporation and financing environment.Part three: This part analyzes the systemtic defect of Chinese financing property and the original reason of its poor accomplishment, and states that there are three defects about financing system: the defects of structure, the defects of system, the defects of function.It further puts forward that only by conducting reformation of financing system, innovation of financing organization , reformation of financing property can harden the restraint of financing cost of state enterprises and promotesthe efficiency of capital market, and it further improves the capital structure of state enterprises.Part four: this part compares the differences on financing structure and fiancing style among America,German, Japan and china ,and it analzes the existed reason from these aspects such as : the power of self-accumulating ,financing costs, corporation governing and the efficiency of market. The paper also states the reason about the poor effection of corporation gonerning, and put forwards some policy suggestion such as : building effective mechanism of paying debt, building impelling system of managers' holding stock, developing bonds market of companies, strengthening the supervivisory power to commercial banks,cultivating the institutional investors, reinforcing restrainment mechanism from outside.Part five: This part is for the relationship between capital tructure and governing structure of corporations and its improvement. Using the means of system and its gradation, it expounds their relationship between capital structure and governing structure,and it gets the best share-holding proportion which managers should get in a corporation by a mathematical model.It puts forward some tactics of improving the capital structure of listed corporation,and finally it analyzes the determinants of capital structure from the macro-elements and the micro-elements.Part six: This part analyzes the relationship between the cost of capital and corporation value,and states the internal mechanism which the value of a corporation changes in pace with the changes of capital structure .it puts forward that the maximum of value of corporation should be a basic principle of deciding the best capital structure .by equilibrium theory ,it calculate by a practical example the best capital structure that a corporation should reach when it circulates funds through debts.it aslo build a theoritical mathematic model by which we can find the most appropriate level of bearing debts and the security line of bankruptcy.finally it expounds the reason of the high liabilities in Chinese state enterprises such as the restrainment of property, the intervention of government,soft-restraining ofdebtSjUnreasonable law of bankrupcy and the less developed capital market.It put forwards that the fundamental ways to resolving this problem still depends on the innovation of property system.Part seven: This part put forwards that "pecking order"does not fit the present state of Chinese listed corporations because its premises are untenable in china in view of the partiality for circulating funds by stock market in Chinese corporations. As the means of competition mainly depends on expanding investment,and the cheap financing make the capital over-demands swell,and it furthe leads to a result that Chinese listed corporatons be in a circumstances of liquidity-lacking as Dewatripont and Tirole had described.In a word, liquidity-lacking is the original reason about the partiality for circulating funds by stock market in Chinese corporations.Part eight.-This part is for the route-restraining of capital srtucture of Chinese listed corporations and the long-term liabilities market.the author states that the cost of debts and the costs of share should be regarded rationally.The smaller bonds market of corporations compared with stock market is unfavorable to the improvemnet of capital structure of listed corporations.considering from government and comercial bank.meanwhile ,the long-term ceredit mechanism planed for great state enterprises at present is also not unforvorable for the the need of circulating funds to listed corporations,so bonds market and the long-term credit mechanism should be further developed and reformed.part nine: This part is for the strategic thinking to the whole improvement of capital structure of Chinese state enterprises.the author states that "obligatory right change into shareholders'right"only can be a transitional measures to improve the capital structure of state enterprises,and it aggravates the moral-hazard of enterprises and the cost of government,and worsens the credit relationship.the author put forwards that the improvement of capital structure should suit the strategic structure regulation of state enterprises ,and "obligatory right change into shareholders'righfis a positive election to improve the capital structure of state enterprises,and its ways should be diversity,and it further states convertibil bonds and ESPOS (EmployeeStock Ownership Plans) have great meaning both on theory and on reality to"obligatory right change into shareholders'nght".Part ten: This is the conclusion part. It summaries the research findings and points out the issues that need to be solved in future.