Research On Influence Of Financial Structure On Value Of The Listed Agribusiness

The listed agribusiness were regared as the most advanced productive organizations inChina, but their performances toally in capital market is not excellent for forgoing theobjective of maximizing of firm value. Being a core issue in financing theory, Corporatefinance structure have effective on firm value which not only fascinates scholars, but also canimprove capital efficiency and creat firm value in the end.Based on capital structure theory and corporate governance, the paper adopts the mainpath of'finance sturucture-conducts-firm value, and it study the effects in different stageswith a synthetic framework of combing the qualitative with the quantitative analysis methods.The content except the first chapter of introductory remarks and the seventh chapter ofconclusion is divided into two parts logically and five chapters in the form.The first part is the rationale, including the second chapter and the third chapter. Firstly,it mainly analyses the classical theories in the history of financing theory. Secondly, the paperdevelops a method to divide the listed agribusiness into several stages with which arrives acompletely characteristics of financial structure and firm value in different phase.The second chapter analyses literatures including the former and modern capitalstructure theory on which the next research is based. Therefore, it raised a option thatcorporate governance is embedded in the chain of financial structure to firm value. At last itdefines and explains several most important concepts of the life cycle of firm value, the listedagribusiness and so on.The third chapte firstly introduces basic condtions of the listed agribusiness, and thenputs up with a system method to mark off the listed agribusiness, fortunately sum up twogrowth models. In the end it can compare the characteristics of finance structure and firmvalue in different phase which provides the rational facts for next chaptes.The second part is the real diagnosis analysis in financial structure mechanics processand the applied research, including fourth chapter to sixth chapter. Financial structureincludes the share structure and capital structure which are discussed exclusively andmutually in the effects on firm value. With the empirical test, several conclusions areachieved in different stages. The fourth chapte begins with two parts of capital structure.According to the fact ofshort-term debt only in the listed agribusiness, it studies the short-term debt'controling effectwhich can reduce the risk investment behavior of shareholder, and cut off asset replaceagency cost to creat firm value. Firm has to balance debt maturity structure with debtleverage in choicing of capital structure. At the same time, debt leverage has the closingrelationship with product market competition. The chapte introduce play game theory toillustrate the double effect of debt of agency effect and strategy effect.and still it deduces thatthe relationship between debt maturity and debt leverage is state relay in firm groth. Theformer opion is confirmed in empirical test of regression and canonical correlation methods,and capital structure has really the limited governance effect.The fivth chapte study the shanre structure which is compared of ownship structure andownship concentration. The ownship structure includes mainly managerial ownsip andinstitution investmenter. Alothough the relation of managerial ownsip and firm value isnon-linear, institution investmenter play an active role in corporate governance. There existpopularly a inverse U sharp between ownship concentration and firm value. Shanre structuremay change its effect on firm value in different stages. Empirical test reveal that theproportion of stock-hold-ing of the number one major stockholder has the inverse U sharpand U sharp in growth stage and mature stage of listed agribusiness value. Still comparedwith firm value mean, different managerial ownsip intervals is significant.The sixth chapte is designed to study corporate financial structure how to influence firmvalue. As the two aspects of financial structure all have effect on firm value by superingmanagers, whose agency cost is most important in listed agribusiness, it constructs asynthetic agency cost model to illustrate the complex relationship between capital structureand share structure and so on. Along with this model, a combined founctions is set up to testrules above in unbalanced data. Firstly, debt leverage is negative relation with firm value aswell as ownship concentration. Secondly, the proportion of stock-hold-ing of the number onemajor stockholder has positive relation with debt leverage. Thirdly, listed agribusiness haschoice more high capital structure in mature than in growth stage. Lastly, managers haveexpropriation behaviour and their salary has no signifinancy with capital structrure. In thenext section, it utilizes DEA method to evaluate governance efficiency. There exist a mostoptimization capital structure in 51%, and a upper limitation of frim value in 0.13, which isinverse U sharp relationship with governance efficiency.