On The Theory Of Capital Structure Of Listed Companies In China

The Capital Structure is a key point in the scope of corporate finance .It has plenty of theoretical implication. With the development of information economics and behavior economics, the Capital Structure has no long been a static question and even beyond the scope of corporate finance. Especially in an emerging market such as china, corporate capital structure could be influenced by a variety of factors. The special characteristic of capital structure of Chinese listed companies makes plenty theoretical and practical sense to study this topic. This paper will study the Capital Structure of Chinese listed companise.By learning from the mature theories and analyzing the problems of the liseted companies,a analytic structure which is used to explain the capital structure of Chinese listed companies will be expected to be found.The existing research show that Chinese Capital Market and the listed companies have their own characteristics.For this cause,the mature Capital Structure can not give us a satisfactory explanation. This paper try to build a theoretical framework which is different from the picture as mature market to explain the capital structure of the Chinese listed companies. This paper has five parts:Part1:Introduction. This part generally discuss the following contents: the puzzle of Capital Structure; Theory of Firm and Capital Structure; Principal-agent, Incentive Mechanism and. Capital StructurePart2: Summary of Capital Structure Theory. This part summarize the main theories of Capital Structure, including Principal-agent Theory, Information Asymmetry Theory and Controlling Power Theory.Part3: The research of Capital Structure of Chinese listed companies. According to study of this part, the Chinese listed companies have their unique characteristics: lower debt-asset ration and obvious preference of equity financing.Part4: The further study about Capital Structure of Chinese listed companies:the theoretical explanation. This part explain the Capital Structure of Chinese listed companies from the following three aspects: the institutional facts; corporate governance of listed companies; principal-agent problem.Part5: The suggestions of how to perfect the Capital Structure of Chinese listed companies.