China's Listed Companies, Capital Structure Optimization Analysis

In the perfect market, company's capital structure has nothing to dowith market value. Modigliani and Miller's surprising discovery drawback the prelude of capital structure study. Thereafter, weigh theory,balance theory, motivational theory, asymmetrical information theory;control theory etc. broke through the perfect market and revealed it in thefar perfect real world that the capital structure and the market value ofenterprises are closely related. In traditional planned economy, enterprises of our country were notindependent legal person's entity, the capital sources of enterprisesdepended on financial allocations and some few low-interest loans ofbank mainly. Enterprises did not have financing autonomy, in addition thefinancial market was close, the capital source channel was narrow, whichmade enterprises lose possibility of choosing the financing wayindependently .So, the research of enterprise's financing problem of ourcountry has been very weak all the time. With the gradual setting-up ofthe socialist market economy system and modern enterprise system, howto obtain the steady capital source, how to arrange for the capital structureof enterprises which become the focus question in enterprise'smanagement and administration gradually. On the other hand, a lot of domestic scholar's study on capitalstructure of listed company of our country shows in recent years, becauseof the difference in such respects as market environment, enterprise'ssystem and banking system, etc., the western capital structure theory cannot well explain and guide the financing behavior of the listed companyof our country. That how to use capital structure theory combiningChinese fact to explain our listed company capital structure has importanttheory value too. In the face of the theory and realistic conflict, taking a great deal ofpondered-over question, my logic thinking on theory follow "foreshadowing - current situation analyses - countermeasure andsuggestion ", I regard capital structure formation mechanism of listedcompany as the breakthrough point, and have analyzed the capitalstructure of listed company of our country. Full text centres on capital structure of listed company and thecontent may divide 3 chapters Chapter one is the foundation stone and brief for capital structuretheory. This chapter is divided into four. Section one is the definition ofrelevant concepts; it explains the interrelation and difference between thecapital structure and the financing structure. To say briefly is that just likestock and flow. The exposition of this festival helps our understanding ofarticle, especially easy to understand the current situation of listedcompany of our country. Section two does a survey and explanations toclassical MM model. Section three introduced the structure theory ofother capital concretely, including weigh theory, balance theory,motivational theory, asymmetrical information theory, and control theory.They have represented various kinds of popular views of structure theoryin the seventies. Section four is current situation of study on the capitalstructure theory of our country. By studying the current situation to thecapital structure of our country in the past, we find the question amongthem and offer the experience that can be used. Chapter two is to analysis the capital structure of our listed company.This chapter is studied according to the theory of the structure of thecapital and various kinds of experience both at home and abroad. In thischapter I make a analysis to the factor influencing capital structure oflisted company, on the base of this I get the leading theory of the structureformation mechanism of the capital. Section two explains the leadingtheory of the structure formation mechanism of the capital, its basicthought is, in different macro policy system, legal environment andeconomic development terms, leading factors of determining enterprise'scapital structure are different. With the change of the macro factors, theleading factor is corresponding too to change. The leading factors includ...