Research On The Relation Between Administrator's Control Power And Capital Structure

Since the development of the corporation, scholars at home and abroad have spent a large amount of energy in seeking to solve " the fan of capital structure ", from traditional capital structure to the break-through of MM theory, then the development of modern capital structure theory. The academia and practice circle are all exploiting the study area constantly, and have gained a series of valuable achievements.After the reform and opening-up in the 1980's, the domestic academia and practice circle realized capital structure problem gradually, and began a series of research correlated with capital structure. The research launches the theoretical analysis and positive examinations mainly from the aspects of capital cost calculation, equity financing partiality and influence factors of capital structure. The research is meaningful to optimize capital structure of listed company in our country. However, the research still is unable to explain the "preferring equity to debt "problem of listed company in our country.Based on control power theory of capital structure, this article combines normative approach and positive approach, takes administrator's shareholding ratio as the substituting variable of the control power structure, then researches the relevant relation between control power and capital structure to explain the behavior of equity financing partiality in Chinese listed company.Chapter one is the introduction of this article, analyzes research background and current research situation of capital structure in our country, introduces the way and the frame of research, and defines the concepts of capital structure, stock right structure and control power structure.Chapter two to chapter four is the normative study part, reviews modern theory achievements of capital structure; analyzes the main way of administrator's incentives and theoretical foundation of stock right incentive; and analyzes the current situation of capital structure in our country, and the research result shows that the listed company has equity financing partiality. Alot of scholars have explained the behavior from many aspects too, and I summarize these explanations.Chapter five reviews relevant positive documents both dominant and foreign at first, then analyzes the relationship of administrator's control power and capital structure in theory, puts forward two research assumptions based on the control power theory of capital structure; and chooses 434 companies as the sample which is listed on Shanghai Stock Exchange and adopts stock right to incent administrator and makes analysis using linear regression in SPSS software. Then, I get the result of positive research that administrator shareholding ratio and capital structure is negative relevant in our country. This is not in conformity with control power theory of capital structure, but it's in conformity with equity financing partiality. Finally, I analyze the reasons for forming this conclusion, and offer the correlative suggestion.Chapter six introduces the weak points of the research and some imaginations of study in the future.