Research Of The Relationship Between State-owned Shares’ Proportion And Capital Structure Of Listed Companies In China

China’academics began to study the capital structure of companies in the1990s in which period the firms’financial reform and innovation is popular, the development of the capital market provided different kinds of approaches for listed companies to finance. After ten years of development, the number of listed companies and the capability of capital market in China increased, as well as the number of funding channels and financing tools. The listed company has its unique way of financing, usually considering the external financing first, which includes equity financing and debt financing. At the same time, the ratio of state-owned shares is especially high. So what kind of impact will impose on the capital structure of enterprises by state-owned shares is an issue that worthy of seriously considering and studying.In terms of research ideas, we made research on the choice of the equity structure and capital structure of listed companies in China based on the present situation of China’s special ownership structure and capital structure by using method of combining theoretical analysis with empirical analysis. Although the theoretical study of relationship between equity structure and capital structure is in great amount, but the empirical test is lacking, and this paper test the relationship of the both in empirical study.In terms of research contents, we clarify the theory of the equity structure and capital structure first, and then analyses the assumptions of them. Under the assumption about the relationship of equity structure and capital structure, we made an empirical analysis of the A-share listed company data in2011. Our study showed that the state-owned shares account for a significant positive correlation with the capital structure. Finally, we propose several proposals to optimize the equity structure and capital structure.