Study On Capital Structure Of Family Enterprises In China

Since China's reform and openness family (private) enterprises are playing more important roles in Chinese economic and social development. At present, most family enterprises are in the key period of growth. How to lead family enterprises to sustaining and healthy development is becoming an imperative issue. Especially since 2001, a passel of family enterprises openly issued stock and listed. So family listed companies'issues of financing methods, household sole major shareholder and family enterprise's governance are widely focused by scholars. All the problems correlate with capital structure. At the same time scholars lack deep study on these issues.Based on the capital structure theories, combined with the history and real life of family enterprises, using family listed companies' data, the dissertation empirically analyzes the impact of debt financing, equity financing, liability-asset ratio and ownership structure on family listed companies' corporate governance efficiency, the factors of impacting on capital structure decision. On the basis of these analyses, the objects, methods and countermeasures of optimizing family enterprise's capital structure are put forward as to offer references to capital structure's optimization and government's policy-decision.It is significant to study the influence of capital structure to financing mode, capital cost, finance risk and corporate governance, which can optimize capital structure, exert family enterprise's advantage, eliminate family enterprise's disadvantage, promote family enterprise's growth and sustained development, improve resource's allocation efficiency.The dissertation consists of five parts as follows:Part â…  expounds family enterprise and capital structure theory, and roundly analyze the influence of capital structure on family enterprise's development. And the part defines and classifies family enterprise, analyzes the rationality and shortcoming of family enterprise, and sums up development mode of family enterprise. Then the part introduces the traditional capital structure theory, the modern capital structure and its new achievements. According to capital structure theory, the part also analyzes capital structure's impact on financing modes, finance cost, finance risk, investment decision, asset structure and corporate governance.Part â…¡ opens out the status of family enterprise's capital structure in China. Onthe basis of listed company's data, the dissertation analyzes the degree and change tendency of debt financing and debt-asset ratio of family listed companies, thus some phenomena are find that debt financing's proportion is low and debt-asset ratio is not high as a whole but ascending tendency. Then according to data, the dissertation analyzes the characters of ownership structure and corporate governance, thus we find that ownership structure' composing is comparatively complicated, and sole major shareholder is universal, and the character of corporate governance's familization is obvious.Part â…¢ analyzes capital structure's impact on family enterprise's corporate governance. Using the data we quantitatively analyze the impact of debt financing ratio on family enterprise's corporate governance. It is found that debt financing is propitious to strengthen corporate governance, increase payoff capacity and enhance corporation value. Then we quantitatively analyze the impact of debt-asset ratio on family enterprise's corporate governance. It is found that the relation of between debt-asset ratio and corporate governance efficiency is positive. Combining qualitative analysis with quantitative analysis, we analyze the impact of stock share ownership composing, stock share ownership convergence degree and stock share ownership equilibrium degree on family enterprise's corporate governance. It is found that juridical-person-owned shares correlate positively with corporate governance efficiency, and circulated stock proportion does not obviously correlate with corporate governance efficiency, and stock share ownership convergence degree correlate negatively with corporate governance efficiency, and stock share ownership equilibrium degree correlate positively with corporate governance efficiency.Part â…£ confirms the influencing factors of family enterprise's capital structure decision. Firstly we conclude former research fruits and qualitatively analyze the influencing factors of family enterprise's capital structure decision. On the base, we confirm the influencing factors via quantitative analysis. It is found that debt-asset ratio on account writes up with company scale, collateral and growth quality, and writes down with profitablity and non-debt tax shields. At the same time equity structure have important influence on capital structure's decision. It is also found that debt-asset ratio on account writes down with family-owned share proportion up. Whereas debt-asset ratio on account correlate positively with juridical-person-owned share proportion and circulated stock proportion.Part â…¤ puts forward the objectives, methods and countermeasures of optimizing family enterprise's capital structure. The dissertation confirms the objective is corporation value maximization. And the dissertation considers linear programming and fuzzy synthesis judgment is suitable for capital structure optimization decision. As for government, corresponding polices and measures should be shaped to create favorable conditions and environments. At the same time, correlative rules of law should be consummated to reinforce supervisory and restricted function. Besides external governance mechanism including capital market, manager market and control right market should be taken full advantages to self-consciously optimize equity structure.