China Listed Companies' Capital Structure And Business Performance Study

The paper wants to analyze the relations between capital structure and effectiveness of Chinese listed companies. It includes four chapters. The first one is the exordium which illuminates the outlines of the paper.The second one firstly introduces the main three phases in the development of the capital structure theories and the representative theories of each phase, and then compares the advantages and disadvantages between univariate effectiveness measures and multivariate effectiveness measures.In the third chapter, the paper analyzes the correlation between the company effectiveness and the ratio of bond-financing to stock-financing through agency theory and pecking order theory. Then the paper analyzes the effect of the stock-owned proportion of internal manager to the company effectiveness on the basis of agency theory and corporate control theory. Finally, the chapter summarizes the correlations between capital structure and company effectiveness theoretically.In the fourth chapter, the paper firstly analyzes the particularity of the capital structure of Chinese listed company, and then brings forward to hypotheses and tests them according to the results of descriptive statistics and regression analysis.In the part of conclusion, the paper summarizes the results of theory analysis and empirical analysis, based of which the paper puts forward to own suggestions for Chinese listed companies.