Minority Areas Listed Company Capital Structure Optimization

The capital structure is the cornerstone of the modern enterprise, it affects and determines the nature and governance structure of the company, and further influence and determine the characteristics of company's behavior and value of the enterprise. It has been proved by practice that a good capital structure is beneficial to the healthy development of the company, while the irrational capital structure will not only restrict the development of the company, may also lead to a financial crisis. Although the ethnic areas are rich in natural resources, the region economic development shows nationality, backwardness and imbalance, therefore, the research on company capital structure of this area has special significance. The listed companies in these regions are the leading enterprises of the industry and ethnic economy. They are the pioneers in the ethnic economic construction and their behavior plays the company's new operating philosophy exemplary role. This paper selects ethnic area listed companies (excluding the ST and*ST companies) as our samples, the research data is from the open resources of Annual Report from2003to2010, the research focus is the companies'capital structure, and an empirical study in the capital structure of listed companies from ethnic area is fulfilled.The paper is mainly divided into three parts. The first part is the Introduction and the first Chapter, and the purpose of this article topics, the research meaning and content are represented in Introduction segment; the first chapter reviews the domestic and international capital structure theories, from the traditional capital structure to the new capital structure theories, meanwhile, it introduces and reviews the main branches of the basic ideas, and provides a theoretical basis for in-depth analysis of the ethnic areas listed company's capital structure.The second part is the second and the third Chapters, the qualitative and quantitative analysis of influencing factors of the ethnic areas listed companies' capital structure are carried out. The second Chapter analyzes the ethnic total listed companies, industry, areas distribution characteristics, the capital structure characteristics, and the equity conditions as well, which concludes that the ethnic areas listed companies in China prefer more choices equity financing, and the financing method is relatively single. Through the SPSS software and multiple regression model, the empirical analysis of the capital structure influencing factors of ethnic areas listed company is explained in the Third Chapter, furthermore, the ethnic areas listed company capital structure influencing factors are figured out that the scale of the ethnic areas listed company, business revenue growth rate and asset collateral value are positively related to asset liability ratio; asset net interest rate, the state-owned shares proportion and the non-debt tax shields is inverse correlation to the asset-liability ratio; while the relationship between Tobin value, the non-tradable proportion and the asset-liability ratio is not significant.The third part is the fourth Chapter. In accordance with the first two parts of the theoretical and empirical analysis, the optimization goals and measures of the ethnic areas listed company's capital structure are proposed in this part. On one hand, the internal management mechanisms include:to strengthen the company's internal management, strengthen the financial constraints, strengthen capital operation, and optimize capital structure as well. On the other hand, the external control measures include:regulating the behavior of stock market participants, accelerating the healthy development of capital market, developing and improving the bond market.