The Study On Financing Structure And Enterprise Value Of Listed Company

Since 1958, the company's capital structure theory has been a hot issue in the securities market, MM theorem point that the company's capital structure has nothing to do with the company's market value without transaction costs, tax burdens, no asymmetric information. However, MM theorem only describes an ideal state. From 1960s to 1990s, many scholars made further development on the MM theory. These results indicate that, the company's market value is closely related to the company's capital structure and the company's financing structure has a decisive impact on corporate governance structure, thus affecting the business value in the real world.Any problem has its own realistic background, the financing structure and value of listed companies is no exception. In China, this issue was relate closely to the current stage of China's capital markets, the development and the external environment of listed companies.In the case of my country, it's a significant and urgent matter to study the financing behavior and financing structure of listed companies. Since the reform and opening up, China's enterprises have changed much on the nature and functions, and the funding sources and financing mechanisms have also undergone a fundamental transformation. "Financing" has been a key problem which was not important and even neglected by enterprise management. Along with the importance of this shift in financing, all kinds of "conscious" "unconscious","rational" and "irrational" financing behavior are emerged. These kinds of behavior may influent the efficient use of financial capital and the entire security of financial system. Therefore, the research on firm's financing structure and financing acts will not only help improve the corporate value, but also to regulate the financing behavior of listed companies, ensure the healthy development of securities markets, improve the financial market structure and improve the efficiency of resource allocation.As one of the core content in modern enterprise system, financing structural has always been hot issue. The research on financing structure was carried out along three directions:the company's financing structure did affect the business value or not; the best financing structures'exists; factors that affect the company's financing structure. The first two are theoretical studies, and the third belongs to empirical research. The debate on whether financing structure can affect the enterprise has become conclusive after nearly half a century.The purpose of this research is to make a comprehensive and objective judgment on current financing structure, enterprise value and influencing factors of listed companies, then, find out the problems, contradictions. Thus, explore the actual situation to improve corporate value and promote enterprises to develop sustained, healthy and stable.In the part of the theory, this paper first describes and evaluates the development of the theory of capital structure, including early capital structure theory and modern capital structure theory, and on this basis, reviews the research methods and results about the financing structure at home and abroad. Then analyze the mechanism how the financing structure affect the enterprises from both from static and dynamic part, and establish a analytical framework contained with theory, normative analysis and empirical analysis along the main line " financing act-financing structure-business value," In the analytical framework, the theoretical research, empirical research and policy proposals are all in accordance with "a built-in base (reasonable financing structure)" and "an external condition (perfect capital markets)". The framework combined the financing structure, enterprise value and capital markets organically.In the part of the Empirical research, I firstly analyze theoretical impact of financing structure on business value and use the 2004-2007 panel data of 233 listed companies to build a mix of panel data regression model, fixed effect model and random effect model, then choose the result of random effects model to explain the influence of financing structure on enterprise value. In addition, the relevant data for 2004-2007 are not accidental, the enterprises of China began share structure reform in 2005, before and after the share reform of enterprises we may see the change that financing structure has impact on enterprise value. The study found:As China's macro-economic institutional environment, some of the conclusions tested in developed countries do not use in our country, and some even appeared opposite conclusion.Base on the theoretical analysis and empirical analysis, this article try to identify the issues of financing structure affecting the value of listed companies. From the empirical analysis, in order to improve the financing structure of listed companies and improve the value of listed companies, it must optimize the financial structure of listed companies and improve the financial structure of listed companies. It's impossible to succeed to settle problem just from the internal factors or external environment.Finally, the paper suggests listed enterprises should optimize the financing structure of the inner base (restraint mechanism to enhance equity, strengthen claims restraint mechanism) and improve the financing structure of the external environment (changes management system in capital market to improve capital market efficiency and develop a balanced capital market) against the problem of financing structure. And, in the end of the paper, I make the necessary instructions about limitations of this study and further research directions.I hope that this paper will have implications for corporate finance theory, while provide a theoretical basis and practical guidance for listed companies to make financing decisions.