A-share Listed Companies In Henan Province Capital Structure

The research on the corporate capital structure is always one of the hot issues in the financial theory study and corporation theory study. Many Chinese and Western economists had studied causes of the formation of capital structure from different angles of agency cost , bankrupt cost and information asymmetry ,etc. and had indeed put forward some ameliorating suggestions and optimizing measures.But till now ,very few studies on district corporations capital structure and even less researchs on Henan province A-share listed companies can be found.Based on the data of annual finance reports from 2002 to 2005 of Henan province A-share listed companies, this thesis analyzed the present conditions of the capital structure of these companies at the end of 2005 and its changing trend from 2002 to 2005. Reasons that lead to problems of irrational structure are also given in the process of analysis, as well as some suggestions on how to optimize the capital structure of Henan province A-share listed companies, how to save the fund cost and how to avoid finance risk.This thesis firstly analyzed factors that affected the capital structure of Chinese listed companies, mainly including factors of policy and statute such as the stockholder's rights policy, bond financing policy, and company capital system, factors of macro-economy such as the economic development level, the profession characteristics, the capital cost and the financing tool, as well as factors of micro-economy such as profit ability, company scale, stockholder's rights structure. Then the thesis began to analyze the capital structure of Henan Province listed companies on A stock market .The analysis began from two aspects: the capital structure of Henan Province listed companies on A stock market in a static state at the end of 2005 and the capital structure dynamic change tendency of Henan Province listed companies from the year 2002 to 2005 . Some problems in the capital structure of Henan Province listed companies are found: low property debt rate, big profession differences existed in property debt rate,unitary extraneous source financing channel(mainly depended upon the bank credit fund), unreasonable long-term and short-term debt in debt the structure, big extraneous source financing proportion and small endogene financing proportion ,greater attention being paid by the privately operated holding companies compared to the state-owned holding companies to endogene financing etc.In view of the above problems, this thesis proposed some optimizing measures and suggestion. The following are included: to strengthen the region financial center construction, to advance local financial institution reform, to positively carry on the policy guidance, helping Henan listed company to widen the financing channel, to cultivate the professional manager market, establishing scientific mechanism to select and employ senior managers, to positively develop organizational investors and personal investors, optimizing stockholder's rights structure, to establish persistent effect encouraging mechanism towards senior managers, impelling these senior managers to be stock-holders and to establish effective internal control and restraint mechanism.To enhance the profit ability, expanding endogene financing proportion and optimizing capital structure, to open up the financing channel, multiplying financing ways, to choose suitable dividend profit assignment policy, to optimize the company's capital structure considering its property constitution and property's specified-purpose only and so on, to properly adjust the capital structure and financing channel at different time according to the actual situation of the company are also included.This article's innovation mainly lies in the analysis of Henan A-share listed companies' capital structure with the short-term with-interest debt rate, long-term with-interest debt rate and complete with-interest debt rate. It also innovatively analyzed the proportion structure of Henan Province A-share listed companies' endogene financing and the extraneous source financing and proposed some measures for these listed companies to optimize their capital structures.