Empirical Research On The Effect Of Company Control On Capital Structure In Manufacturing Industry And Information Technology Industry

With the gradually deepening reform of economic system in our country, capitalist market has also been gradually established and perfected, which provides a platform for listed companies to optimize capital structure so that they can have diversified financing channels. However, due to the particularity of China’s economic system, there are still many problems existing in listed enterprises in our country. First, during the reform of economic system, enterprises have many problems needing to be solved without a unified and effective control mode; besides, most listed companies in our country are restructured and formed from state-owned enterprises or investment institutes subordinated to and controlled by government. There are many non-standard behaviors existing in restructuring process. Enterprises are still controlled by state-owned large shareholders; manager level has weak independence; supervision and control mechanism is imperfect; administrative staff have unqualified moral risks. In addition, bond market in capitalist market is imperfect since enterprises have preference for equity financing, which leads to even more irrational capital structure. Thus, based on current situation of listed companies in our country, the paper aims to analyze the effect of corporate governance on capital structure theoretically and empirically.First, literature documents about corporate governance and capital structure home and abroad are referred to in the paper so as to lay basis for the following empirical research.Besides, statistical analysis is adopted to give a general description on capital structure in China’s listed companies. At last, it studies the relationship between industrial factor and capital structure by using the analytic method, one-way analysis of variance. According to the result, different industries have obviously different capital structures. On the basis,multiple-linear regression model is employed to test the effect of corporate governance on capital structure regarding manufacturing industry and information technology industry in Shanghai and Shenzhen A shares. The empirical result shows that share concentration,shareholding proportion in manager level, proportion of independent directors and product market competitiveness have a negative correlation with capital structure in manufacturing industry and information technology industry; while proportion of circulation stock, scale of board of directors, activities in board of directors as well as activity times in regulatory commission have a positive correlation with capital structure. Besides, the scale ofregulatory commission and audit comments has no significant relationship with capital structure in manufacturing and information technology industries. The general manager level as well as directors has no significant relationship with capital structure in listed manufacturing companies, but they have an obvious negative correlation with capital structure in listed information technology companies. The proportion of state-owned shares has no obvious relationship with capital structure in listed manufacturing companies, but it has a significant positive correlation with capital structure in listed information technology companies.