Adjustment Cost To Optimize The Corporate Structure Of Chinese Listed Companies

Capital structure is the core approach of modern corporate financial management theory. The first systematic and fundamental research is did by Modigliani and Miler, they bring out with the famous MM theorem in 1958.Which says capital structure doesn't affect enterprise market value and average capital cost in a condition of perfect market. After that, several economists including Modigliani and Miler themselves put this theory forward with the MM theorem with the consideration of tax, the trade-off theory, the pecking order theory,market for corporate control, these analyses throw lights on the problem from different aspect.After years of expedition, the capital market of China now is heading for a mature stage and the participants become more sensible. Value investment is the main stream. The capital structure, as the core of modern corporate financial management, will impact on the corporate governess as well as the capital cost and enterprise market value. The change of capital structure has become most synthesis indicator of enterprise value. So the theme of optimize the capital structure and the adjustment cost, elevate the enterprise value through optimize the capital structure of it, is theoretically and practically significant to the innovation of different controlling shareholder, and to the promotion of robust and rapid develop of capital market even growth.This paper is arranged in four chapters.Chapter 1: The survey of the capital structure theory.Chapter 2: Analyzes the feature of enterprise capital structure in China.Chapter 3: Section of empirical research, we use the data of 515 public enterprises, the regression on their financial data reviews that capital structure optimize in China is slow with the large adjustment cost.Chapter 4: Analyzed the source of adjustment cost considering the feature of enterprise in our country and the develop process of capital market. Then give suggestions from the view of stakeholders, that government should improve the micro financial environment. The enterprises should enhance their operation ability and reduce the adjust cost of capital structure optimize.