Separation Of Two Rights And Listing Corporation Empirical Research On The Influence Of Government Intervention On The Capital Structure In China

The theory of capital structure is not only the core of the theory of corporate financetheory, it is the soul of corporate financing decisions. In1958, the famous economist Millerand Modigliani(Milliner&Modigliani) in the journal "American Economic Review"published "The Cost of Capital,Corporation Finance, and the Theory of Investment" onearticle. In this essay,the famous MM theory is the basis of studying the theory of capitalstructure. Since then,about the capital structure of the topic has become the focus of futureresearch, so far, be just unfolding. MM theorem is the capital structure theory of milepost,it put the traditional finance descriptive research and general equilibrium analysis of theorganic combination, formed the theoretical framework of capital structure search. Beforethe MM theory, the capital structure influence the corporate value is widely considered tobe complex, while the MM theory is the first to use scientific language, a point of view thatunder restrictive assumptions, namely, it doesn’t matter value and capital structure of theenterprise, financing method can’t influence the enterprise value. Assumption of rigidmakes the MM theorem can be established only in a particular environment, and the realworld is not perfectly formed difference. Therefore, people along the MM theory Road,some realistic factors influencing the formation of financing decision and capital structure,continue to relax all assumptions of MM theory, and promote the continuous developmentof capital structure theory. These theories include the theory of financial distress,taxdifference school,trade-off theory,signal transmission theory,pecking order model, financialcontract theory,the corporate governance structure of school,the opportunity windowtheory and industrial organization theory etc.This paper China background system, continuous information to contain2007to2009may362in non-financial companies listed in Shanghai is deep, the balanced panel data assample(1086observations),the relevant control variables in the control condition,ownershipand control using a series of empirical test of the ultimate GLS the controllingshareholders,the degree of separation of government intervention to influence capitalstructure choice,as well as between the ultimate controlling shareholder of the separationof ownership and control of the choice of capital structure and how to influence bygovernment intervention. The study found (1) the separation of ownership and control rightof ultimate controlling shareholder of the degree and level of long-term debt is negativelycorrelated;(2) was significantly positively related to government intervention and long-term debt levels.The innovations of this paper are (1) to provide a new perspective tostudy the financing problem of the company,from the separation of two rightsperspective;(2) the research content to new problems the separation of two rights,capitalstructure and the flexible combination of government intervention;(3) the research methodsto be innovative in the designing of the model.