A Study On The Financial Structure's Efficiency On Corporate Governance Of Telecom Listed Companies

The corporate financing in our country experiences the change from the planned economy to the market economy financing systems. And the deficiencies of the system and the control mechanism make the listed companies in the telecom industry show unregulated, even irrational characteristics, which forms irrational financing structure and restrain the further improvement of the corporate governance. Therefore, through the further analysis of the characteristics and causes of the financing structure of the listed companies in the telecom industry, I try to find the general law between the financing structure and the corporate governance efficiency, which has great significance in the optimization of the corporate governance and the enhancement of the competitive ability of enterprises, thereby promoting the sustained and healthy development of the economics.Firstly, this paper reviews the financing structural theory development course, introduces the new financing theory, which occupies the dominant position in the theorists and analyzes equity financing and debt financing efficiency on corporate governance. Secondly, analyzes the financing structure feature of telecom industry corporate, including the equity concentration, the shareholder nature, the capital structure, the creditor nature, the short-and long-term debt ratio and so on, and explains the reason from the macroscopic economic and telecom industry's own characteristic. Thirdly, analyzes the efficiency on governance of financing structure of telecom industry and the reasons that can weaken the governance effect of the financing structure using the statistical method. Finally, gives the policy recommendations on how to strengthen the governance effect of financing structure.The findings indicate that the reasons that form the corporate financing structure of the telecom industry are various, including both the factor of the external macroeconomic environment, financial environment, the legal environment and the factor of their own large-scale industries, high growth and high input. Compared with the average level of listed companies, the shares in the telecom industry are more dispersible. The state-owned equity ratio is only 22.11%, but the corporate equity ratio reaches as high as 38.73%. But the scattered equity has not improved the efficiency on governance. Through the regression analysis between the equity concentration, the nature of the shareholders and the corporate governance efficiency, I find that the equity financing structure and corporate governance efficiency do not have significantrelationship in the listed companies of the telecom industry.During the three years from 2002 to 2004, capital structure rises rapidly from 48.8% to 55.75%. At the same time, the long-term ratio of debt does not rise but fall, from 4.38% to 3%. The regression analysis reveals that the debt financing presents the soft restraint characteristic and shows significant negative efficiency on governance. Further analysis indicates that current liabilities have remarkable negative efficiency on corporate performance while long-term liabilities have positive efficiency on governance. Commercial enterprises and banks that provide credit to the operators can't become effective supervisor and restrictor, which has negative efficiency on corporate governance. In addition, the relationship between the MBR and the long-term liabilities, commercial debt financing rate, bank debt financing rate is not significant, which indicates that the investors in the stock market has no interest in the form of the debt of the listed companies in the telecom industry.