Study On Influence Of Capital Structure On Enterprise Value Of Chinese Listed Companies

The optimizing capital structure research is a hot area in financial management theory,the determination and optimization of business capital structure is the problem which the enterprise financial management has been trying to resolve.Capital structure that is a centralized reflection of shareholders rights and obligations, determines the managing structure of corporations,and further influences on their behavior characters and value.Optimal capital structure is in favor of improving the behavior and value of corporations.Optimal capital structure can help ease the benefits conflict of the company and solve the principal-agent contradiction,and can make the balance between the benefits and risks,and make full use of financial leverage and operating leverage to obtain benefits.On the contrary,if capital structure is not optimal,it will bring to the company a variety of consequences,first,it will make company's own funds inadequate,and constrain the company long-term development,and the company's paying ability will reduce because cash flow is not revolvable,the company can face the risk of bankruptcy caused by a slight loss of business.second,if capital structure is not optimal,it will lead to high proportion of foreign capital,company facing market risks,financial risks and the risks of bank credit will be in varying degrees expanded.Since economic system and perfect degree of capital market is very different in every country,and capital structure and their mechanism is different obviously.Due to the special institutional environment in China,Economic development,financial deepening and the legal system environment are insufficient and need improve,For example,the imperfect legal system,unbalanced development of capital market,flaws existing in corporate govern mechanisms.So it is of practical significance to study the relationship between capital structure and enterprises value under this peculiar economy environment background of China.But,most of the listed companies come from the original state-owned enterprise which have been changed the system,Although leaves the form has not traded the essence actually,the capital structure of listed company is incompatible,secondly, due to security market of china has a short history,capital structure of listed companies have many problems during security market continuous development,so the adjustment of company's capital structure is more and more urgent.According to the situation of capital structure of listed companies in china,The paper analyzes the reasons of situation,and looks for the way of building the optimal capital structure,it is very important to promote the healthy development of Chinese listed companies and improve the governance mechanisms.The body of this paper is divided into five chapters:The first chapter is introduction,it introduced the background and significance of the paper,this paper's methods and contents.China's socialist market economy is not long history,it lack the system theory of the capital structure,most of the listed company's capital structure is not optimal,so it is of practical significance to study influence of capital structure on enterprise value under this peculiar economy environment background of China.Chapterâ…¡is the introduction of theory of capital structure,In this chapter according to the development of the western cap tal structure theory,the author puts the capital structure theory into the traditional capital structure theory,the modern capital structure theory and the new capital structure theory,and briefly analyzes the research of capital structure and corporate value from domestic authors.Chapterâ…¢makes a detailed analysis of the relationship between the capital structure and the value of the companies,this Chapter firstly introduces the connotation of capital structure and company value,and then analyzes the relationship between the two from the theory and the practice,we can get that the different capital structure has a significant impact on the value of company,and only optimal capital structure can improve the market value of the listed companies.Chapterâ…£is the core part of this paper,which is the situation and comparative analysis of the capital structure of listed companies from home and abroad.This Chapter contains three parts,the first part introduces the situation of capital structure of listed companies of Chinese,and analyzes the reasons of the situation.The second part introduces the situation of capital structure of listed companies from the foreign developed countries,that is the capital market-oriented English-American model and the bank-oriented Japan-Germany model.The third part discusses the different factors which cause the different capital structure of domestic and foreign listed companies.Chapterâ…¤is about the measures of optimizing the capital structure of listed companies and improving the value of companies,It is mainly integrating advanced experiences of developed countries with China's actual situation to solve the problems in a targeted manner according to the problems put forward by the last Chapter.The Chapter contains two parts,the first part analyzes the factors such as the economic cycle,macro-economic environment,company size and the conditions of the cash flow which should be taken into account when optimizing capital structure.The second part gives the measures and proposals optimizing the capital structure and improving the value of companies from optimizing the ownership structure,developing vigorously the corporate bond market,controlling financial risks and improving corporate governance structure.