Decision Ownership Structure And Capital Expenditures

Capital expenditure decision is an important financial decision of enterprise andis related to the company’s survival and development. The ownership structure as thebasis of corporate governance, it has a major impact on capital expenditure decisionof enterprises. About the role of ownership structure in corporate governance, manyscholars in at home and abroad have launched an extensive study, but the conclusionsalso are different. With non-tradable share reform of our country, the ownershipstructure has a great change. The state-owned shares were reduced and theoutstanding shares were increased, the equity structure presents a characteristic ofdiversification. The ownership structure of these changes may make a new role oncorporate governance. The article is based on this background to explore therelationship between ownership structure and capital expenditures, explore the effectsof the corporate governance.Firstly, this paper reviews the relevant literature on the study and brieflydescribed the status quo of ownership structure and capital expenditures of Chinesemanufacturing industry. Using the principal-agent theory and asymmetric informationtheory to do theoretical analysis and put forward the research hypothesis. Using from2009to2012in the latest data of manufacturing industry to empirical analysis. Theresults showed that management ownership is positively related to the enterprise’scapital expenditure, but not significant; Proportion of state-owned shares isnegatively related to the enterprise’s capital expenditure, but not significant; Legalperson share proportion is positively and significantly related to the enterprise’scapital expenditure; Circulation A shares proportion is negatively and significantlyrelated to the enterprise’s capital expenditure; Institutional investor shareholding ispositively and significantly related to the enterprise’s capital expenditure; Ownershipconcentration is negatively and significantly related to the enterprise’s capitalexpenditure; From the nature of the equity, the state-owned enterprises of local government holding has a promoting effect on level of capital expenditure.Finally, in this paper, based on the ownership structure is the influence of thecapital expenditure decision in enterprise, we give some policy suggestions. Toimprove information disclosure system of manufacturing industry and the capitalmarket of our country continually, to regulate the behavior of the government’sinvestment and financing.