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Research On Adjusting Financing Structure And Optimizing Corporate Governance For China's Listed Companies

Posted on:2007-06-11Degree:MasterType:Thesis
Country:ChinaCandidate:G G RanFull Text:PDF
GTID:2189360185473374Subject:Political economy
Abstract/Summary:PDF Full Text Request
Financing structure refers to the forms of different financing manners and ratios of the financing amount. It includes equity structure, capital structure and debt structure. Financing structure links with corporate governance in nature. Different financing structures determine different corporate governance models and efficiency, thus affecting company performance.To light the internal relationship between the financing structure and corporate performance in the economic transition period of our country, we selected 295 listed companies for the study sample and positively test it based on available theoretical and empirical analysis. Empirical studies indicate : (1) The degree of ownership concentration exists positive correlation with company performance. The proper concentration of equity structure have advantage to improve the quality and efficiency of corporate governance; (2) a certain proportion of the circulating ownership unit , which is relatively stable, will strongly balance controlling shareholders and improve corporate governance efficiency; (3) The low ratio of holding shares for company's senior managers did not meet an incentive effects; (4) creditor governance is ineffective e; (5) liquid liabilities ratio exists a negative correlation with company performance, and liquid liabilities to a certain extent played the role of liquidity governance.To improve the quality, the efficiency of governance together with enhancing company performance, it is necessary to adjust and optimize the financing structures of listed companies: (1) modestly reducing state-owned shares and shaping effective holding bodies for state-owned shares; (2) establishing an effective bankruptcy mechanisms and market withdrawal mechanism; (3) continuing to advance the corporation reform of state-owned commercial banks, and timely relaxing the restriction that banks hold business shares; (4) optimizing debt structure of listed companies and innovating debt financing tools; (5) practicing incentive stock options plan to the company's senior managers; (6) fostering institutional investors and bringing into full play their positive role in corporate governance.
Keywords/Search Tags:Listed companies, Equity structure, Capital structure, Debt structure, Corporate governance, Corporate performance
PDF Full Text Request
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