| With the booming of the economy, Chongqing and Chengdu’s listedcompanies as excellent samples of corporations in the regions, which havestrong demonstration effect on other corporations’ economic behavior andselection, have been became important force of the economic development inChongqing and Chengdu. So, rational capital structure of Chongqing andChengdu’ listed companies not only benefits the corporate governance andperformance of corporations, but also improves the economic competition ofthe two regions.Firstly, the paper studies the theory related to western capital structurewith purpose of building foundation of the research. Then the article studiesthe listed companies of Chongqing and Chengdu from two aspects that areparallel between performance and capital structure. On the hand, the paperanalyzes capital structure characteristics and financial structure of Chongqingand Chengdu’ listed companies; meanwhile, compares with domestic andabroad. By the comparison between the developed countries and somedeveloping countries, there is the preference to debt financing in Chongqingand Chengdu’s listed companies; the floating debt is higher, and the fundeddebt is lower. On the other hand, the thesis evaluates the listed companies’comprehensive performance of Chongqing and Chengdu in principalcomponent analysis between2000and2009based the model of principalcomponent analysis composed of an index system that can reflect sixperformance levels of the corporations, including twelve indexes. Then fromthe angle of equity structure, the paper studies on relationship between capitalstructure and performance in Chongqing and Chengdu’s listed Companiesthrough the employment of two simultaneous-equations models. Aftercontrolling relative variables in the test, the paper finds that capital structurehas no significant effect on the companies’ performance of Chengdu.Differently, the capital structure has positive effect on performance ofChongqing’s companies. The performance of the corporations in two regionsboth have negative effect on capital structure; the fraction of shares owned by the largest shareholder is negatively related to corporations’ performance,and the three largest shareholdings has positive relation to corporations’performance; Proportion of shares owned by state, legal person shares andcirculation have negative relation to performance in Chengdu’ companies, butthe relations are not significant in Chongqing’ companies. Finally, on the basisof theory and empirical study, the article advances the policy suggestions toimprove the capital structure and equity structure of Chongqing andChengdu’s listed companies. |
