The Impact Of Control Right?Cash Flow Right And Their Separation On The Capital Structure Of List Companies

With the development of economy and society,the modern company inevitably faced with the need of financing,financing is an important content of modern business decisions.Research on the capital structure has been one of the hot issues in the field of financial research,the capital structure has played an important role in the enterprise market value and management.With the establishment of the modern market,enterprise's capital structure by more and more research and attention of scholars both at home and abroad.Currently in China's listed companies,the phenomenon of ultimate controller is widespread,ultimate controller through the establishment of the Pyramid ownership structure,the structure of the cross shareholding or dual shareholding structure to get the control of the company,and this way will cause the separation between control rights and cash flow rights.The ultimate controller using this separation to control the listed companies and occupy the interests of minority shareholders,and to maximize their own interests.What is the relationship between the control right ? cash flow right and their separation of the ultimate controller and enterprise's capital structure,this paper tries to answer it.The paper selects 2932 listed companies of Shanghai and Shenzhen A stock market in 2011-2013 as sample,to study ultimate controller's control rights,cash flow rights and the effect of two rights separation degree on the capital structure.Through the analysis of empirical results can conclude: The ultimate controller's cash flow right and asset liability ratio have significant negative correlation,the smaller cash flow right,the ultimate controller more tend to choose high debt levels.The ultimate controller's control right and asset liability ratio have significant negative correlation,the higher the proportion of control right,the lower the ratio of debt financing.Based on the threat of bankruptcy debt effect and benefit transfer limit effect,ultimately controller's separation degree of control right and cash flow right is significantly negative correlation with the asset-liability ratio,the greater the degree of two rights separation,the lower the debt levels.The separation degree of two rights of ultimate controller of the private enterprises is higher than state-owned enterprises.The rate of assets and liabilities of state-owned enterprises is higher than private enterprises.The separation of two rights of ultimate controller of the state-owned assets and liabilities rate of negative correlation degree are greater than the private enterprises,it shows that the threat of bankruptcy debt effect and benefit transfer limit effect have a stronger governance effect on ultimate controller of state-owned enterprises.