An Study On The Impact Capital Structure To Company Value Based On Information Industry In China

Since1958when Miller and Modigliani proposed MM theory, capital structure has been focus of academic research. On the basis of the MM theory, economists relaxed its assumptions and formed the balance theory, agency theory, signal transmission theory and the optimal sequence financing theory, and a series of capital structure theory. Those theory indicate that company value and the capital structure have a certain correlation. Capital structure is the core of modern company management, which directly affects the operating performance,market value as well as the sustainable development of the company. The information industry is the backbone i of the national economy, which is also a strategic industry of our country.lt is also related to social and economic fields, and directly promote the development of other industries. Therefore, this paper takes the information industry listed company as the research object, and study on the influence the capital structure on the company value.This paper concluded domestic and foreign research on company value and the capital structure first, and found the study on the relationship between capital structure and company value did not reach an agreement. Secondly, the paper defined concepts about information industry, capital structure and the value of the related, and reviewed the development of the theory on capital structure,and provided basement for the empirical analysis. Then, this paper took81information industry listed companys as research samples, and collected financial data from2008-2010to find the current situation of capital structure and the financing channels.Then we found that the capital structure of information industry listed enterprises have some problems, and analysed why those problems occured. Next, this paper build multivariate linear regression model to study the relation between capital structure and company value based on China’s information industry listed companies. Finally, according to the situation of information industry listed company, the problems occured and the empirical results of the study,and make suggestions on improving company’s capital structure and market value.