The Relationship Between The Stock Price Informativeness And Capital Structure From The Perspective Of Ownership

The information of market, industry and company can influence the fluctuation of stock price. The main basis to judge the enterprise value is the trait information of the company. How much company information the s tock price contains reflects the independence of the company's stock price volatility. The modern capital structure theory combined the theory of asymmetric information and makes a new exploration. They treat company's internal information as a signal to outside investors and can affects the investment behavior of investors. In existing research, the research on the relationship between capital structure and stock price informativeness is relatively few. These studies are not only lack of empirical support, but also ignore the special system background of China. Therefore, this paper analyzes the relationship between stock price informativeness and capital structure in the consideration of the difference of properties of the ownership of the listing corporations.This paper, in accordance with the "theoretical analysis- the current situation analysis- empirical analysis- policy suggestion", studied the relationship between the stock price informativeness and capital structure from the perspective of ownership. First of all, on the basis of the review of domestic and foreign literature, we defined the concepts of capital structure and the stock price informativeness and combed the connotations of them. This paper analyzed and derived the relationship between them in theory from the perspective of risk premium and liquidity premium, and effect of the ownership nature on the relationship. Secondly, this paper described the changes of capital structure, the stock price informativeness of listed companies in China between 2001 and 2014, we found state-owned enterprises had higher leverage, lower stock price informativeness, and less sensitive to the stock price informativeness than non-state-owned enterprises. Then, b ased on the data of listed corporations between 2001 and 2014,this paper empirically investigate the relationship between stock price informativeness and capital structure, as well as the difference between corporations of different nature of ownership. The results show ed that there was a negative correlation between stock price informativeness and capital structure, and the state-owned coporations had lower sensitivity to the stock price informativeness. Finally, combining the theoretical and empirical analysis, the policy suggestions are put forward from the construction of multi-level and transparent capital market, the cultivation of the investment subject and independent third party, the improvement of the quality of information disclosure.