The Research On The Optimization Of Capital Structure Of Chinese Listed Companies

In the late 1990's, with the government's support and push, more and more enterprises of China went public and became the listed companies. Along with the development of Chinese capital market, the listed company is strengthening constantly. But there are many problems and defects during these companies developing, especially the defects of the capital structure have already restricted the listed companies' further development and made their performance much worse or fluctuated. At the same time, the consequence will also hinder the capital market's development and influence the macroeconomy. So the research on the optimizing of the listed companies' capital structure is of far realistic meaning.This paper follows the logic of "the structure - the behavior - the performance" and is divided into four parts. Firstly, We discuss the theoretical foundation - the capital structure theory and define the concept and the goal of the capital structure, we also introduce the historical evolution of the capital structure theory briefly; Secondly, we describe the basic current situation from three respects, which are the debt level, the equity structure and debt structure, and compare these with the western developed countries. Appling the capital structure theory, we analyse the flaw of the corporate governance and the negative effect on the corporate value which result from the defect of the capital structure; Thirdly, assuming company performance as the explained variable and capital structure as the explanatory variable, we set up the plural linear regression model and test four year's data of samples. The results of the empirical study show that the total debt level, equity structure and debt structure of the listed company statistically influence their performance through the corporate governance structure. Fourthly, based on the results of the theoretical and empirical research, we put forward some suggestions about how to optimize the capital structure to achieve the goal of ameliorating the corporate governance structure and maximizing the corporate value.