The Relationship Between Ownership Structure And Capital Structure Selection

Since 1958 Modigliani & Miller founded the capital structure research, the finance educational circles carried on an extensive research to the capital structure, and obtain a lot of research result pleased persons. Today, on the capital structure of financial academia is still one of the hot issues. But the ownership structure have its special in our country, the national, legal person, social public section share keep both with tradable and non-tradable form. On April 19, 2005, China Securities Regulatory Commission released《Circular on Issues relating to the Pilot Reform of Listed Companies Split Share Structure》,and the reform of non-tradable shares was formally initiated. Main purpose is for breaking the boundary of tradable and non-tradable shares. Carry out to all tradable. This will bring about huge influence on listed company ownership structure of our country necessarily. This selected works chooses the influence of the ownership structure upon the capital structure as research object, it more meanings lie in examining the influence of reform of non-tradable shares on capital structure of listed company.In chapter 2, evolved for the theories of the ownership structure and the capital structure to carry on a review respectively, and point out the Entrust- Agency theory is the theories foundation of the interaction for to the ownership structure and the capital structure. Then overview the related research of domestic and international on the influence of the ownership structure to the capital structure. The third and fourth chapters is the Empirical Analysis part, is also an Important part, at this part, Using the panel data of A—share companies that were listed on Shanghai stock exchanges before December 31 2003 during 2004—2006 , Total 2283 companies(annually 761). Take debt ratio as independent variable; Take the ownership structure (Manage the layer holds) as dependent variable. Carry on descriptive statistics to dependent variable and independent variable respectively, For the purpose of the analysis trend. Take independent variable to carry on a layering processing, establishment liner regression model for the each layer to avoid Multicollinearity. With profit ability etc. the capital structure influence factor for the control variable, Carried on multinomial liner regression analysis, Get Conclusion As follows: the relativity between State owned holds ratio, legal person holds ratios and debt ratio is not strong; Management holds ratio and debt ratio negative related; tradable ratio and the debt ratio positive related; The biggest shareholder holds ratio, the first five greatest shareholders holds ratio and debt ratio negative related. H index of The first ten greatest shareholders and debt ratio negative related; reform of non-tradable shares and industry factor have significant influence on debt ratio. And these were the conclusions of the analysis generated (especially of non-tradable share reform on the impact of capital structure choice).