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Research On Capital Structure Of Listed Corporation In China

Posted on:2006-05-15Degree:MasterType:Thesis
Country:ChinaCandidate:B ShenFull Text:PDF
GTID:2166360155951688Subject:Technical Economics and Management
Abstract/Summary:PDF Full Text Request
Capital structure influences corporate governance and enterprise behavior, which is a centralized reflection of interest group's rights, and rational capital structure conduces to realize maximum of enterprise value and minimum of capital cost. Therefore, capital structure and its optimization are important contents on theoretics and practice of corporate financial management.In this paper, theoretics of capital structure is reviewed and expanded, including four phases, and it is compactly reviewed. On this foundation, two modes of the corporate financing are summarized from dynamic view, instead of the whilom static analysis of international comparison. Corporation should finance firstly by the radical mode in china. Academic forshadowing are made for research on capital structure of china listed corporations. Secondly, we make two demonstration researches to listed corporation tight around capital structure theoretics. On the one hand, we study relation of capital cost, capital structure and enterprise size by new section data in steel industries and IT industries. It is shown empirically that DAR is correlated with capital structure negatively and significance is conspicuous. In the same way, enterprise size is correlated with capital structure negatively, but significance isn't extraordinarily conspicuous. On the other hand, we establish model on factor affecting capital structure according to characteristics of listed corporation, and macro-factor is taken into account in particular. By principal components analysis and regression estimate, we draw conclusions that enterprise size, volatility, growth and profitability are correlated with DAR affirmatively, holding share capital is correlated with DAR negatively. We embeddedly explain these conclusions from the creditor, the market rule and corporation etc.. Finally, according to the aim of maximum of enterprise value we analyze symptom of capital structure, then some measures are recommended to optimize capital structure from bank reformation, information open and foundation of learning mechanism.
Keywords/Search Tags:capital structure, capital cost, affected factor, listed corporation, principal components analysis
PDF Full Text Request
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