From Light Industry Listed Companies' Capital Structure Their Corporate Governance

From the MM Proposition in 1950s, the balance theory in 1970s, to the introduce ofnon-symmetry information theory, research domain of capital structure was greatly broaden.Then the corporation governance theory was developed.Corporation governance is a multi-angle, multi-lever conception, and it has closerelation with capital structure. This dissertation first give a brief introduce of the conceptionof capital cost, risk, leverage and corporation value. Then traditional, modernistic capitalstructure theory and the new development were summarized. Main factors which influencethe capital structure were also analyzed. Such as economic development level,managers-holded shares, characteristic of the corp. and of the trade, area the corp. located,economic cycle, stratagem of the corp., product's life cycle etc. What is corporationgovernance was answered from different point of view or aspect in the paper. Main viewpoints of financial mode theory, market narrow eyesight theory and interest related theorywere introduced.Based on the theory above mentioned, financial data of twenty corp., which listed inShangHai Stock Market and belong to daily&light-industry(not include ST & PT corp.) waschose as sample., and different ratios were calculated using the financial data of nineteencorp. from 1999 to 2003. (including asset-debt ratio, fluent debt ratio, debt-shares ratio,paicl-up capital shares ratio, etc.. All the data used in the analysis were restrictd). Thenqualitative analysis combine quantitative analysis, theoretically analysis integrate intodemonstration methods were adopted to study these ratios. And the following conclusionsabout capital structure of listed company were arrived.(1) Asset -debt ratio and current debtratio increase greatly and Debt Equity Ratio has a little boost. These index are approaching arational level in recent years. (2)Ratio of issued capital to equity decrease in a narrow range.Share interest due to pay account 20% stable to asset which could be distribute. (3)Ratio offloating stock to general capital has a steady small increase, and shares belong to the biggestshare holder decrease year by year. Above characteristics suggest that capital structure ofour listed corp. are undoubted improving.Finally, a few suggestions were bring forward. (1).optimize structure of share right.(2).expand the bond market. (3).improve the efficiency of supervisory. (4). exert the regulationand control function of the revenue in capital market. (5) using vary measures to devotecapital and vigor for corp..The another hopes his paper could help listed corp. of china to perfect theircorporation governance from the point of capital structure. Main datum of the paper comefrom professional books, periodical and internet.