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Study On The Capital Structure Of Listed Companies In China

Posted on:2005-02-21Degree:MasterType:Thesis
Country:ChinaCandidate:Y H ChenFull Text:PDF
GTID:2156360152970793Subject:Business management
Abstract/Summary:PDF Full Text Request
Since the publication of MM theory by Modigliani and Miller, the theories of capital structure become more and more gradually. The capital structure choice is a key problem in financial decision in listed companies and the capital structure can affect the financing cost and its market value of a company.Only through deep understanding of capital structure status and its historical envelopment, can we get a full recognition of the capital structure of listed companies, and find out the real problems existed in it. Therefore, this paper first describes theories on western capital structure, introducing the early theories on capital structure, modern capital structure as well as new developments on it respectively according to its development history. On this basis, by using the data of Chinese listed companies, this paper analyzes the capital structure of listed companies in china, and finds out that financing through stock issuing is preferred in these companies in general, which is quite different form the financing sequences prevailing in western countries and the " pecking order theory". The third parts ofthis paper focuses on this problem, and it points out that the difference between the capital cost of liabilities and that of shares is the direct reason and the fundamental reasons lie in the policies and systems. In the fourth part this paper puts forward with relevant counter measurements in detail, such counter measurements mainly include: to strengthen the liquidity of security market, to regulate the behavior of listed companies as well as to enhance the development of security market.
Keywords/Search Tags:capital structure, financing methods, current ratio, property structure
PDF Full Text Request
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