The Effects Of Ownership Structure On Capital Structure Choice

Ownership structure and capital structure are important parts of corporate governance,this article started with the concept of owership structure,capital structure and corporate governance,then reviewd and organized the research results about ownership structure,capital structure, as well as the relationship between them at home and abroad in recent years.The article introduced several kind of capital structure formation theory emphatically,and this achievement was used as the foundation of analyzing the ownership structure's impact on capital structure.After the review of the Theory and Literature ,the article used some indicators to analyse the specific impact of capital structure by ownership structure,the indicators including ownership concentration,check-and-balance of Stock Ownership,Management shareholders,as well as the Ultimate Ownership.Then the article made some assumptions on the basis of the theoretical analysis,then used the sample data of China's listed companies in 2006 to test the hypotheses.The paper provided empirical evidences suggest:debt ratio is negatively related to ownership concentration;debt ratio is positively related to check-and-balance of Stock Ownership;debt ratio is negatively related to management ownership,but it isn't statistically significant at convention levels of confidence;debt ratio is positively related to ultimate state shares and negatively related to ultimate unstate shares.