The Correlativity Research Of Chinese Listed Company's Capital Structure And Performance

Since Modiglian and Miller brought up the theorem of MM, the theories of capital structure of corporation have become hotspot subject in securities business for more than half century. Legion scholar especially overseas scholars have carried on large numbers of theories and demonstration researches about the relations of the capital structure and the company performance from different aspects, but domestic and foreign still haven't achieved the conclusion of their relations. So Myers, a famous financial economics of USA,still says with feeling that "puzzle of capital structure" makes people confused.Having implemented Reform and Open Policy for more than 20 years, the Chinese enterprises' scale unceasingly expands, the organizational structure unceasingly optimizes and the government efficiency unceasingly enhances. But corporate governance problems caused by the capital structure arrangement still exist. To some extent, the unreasonable capital structure arrangement has limited the company achievements enhancement.This thesis mostly took the relationship of capital structure and financial performance of Chinese listed companies as the research object, discussed the effect of capital structure of Chinese listed company to capital perform from two angles of theory and demonstration. First, by reviewing the theory of the capital structure and summarizing former scholar's demonstration researches, the thesis had carried on the general description to the relations of the capital structure and the financial achievements. Second, the thesis had analyzed the financial data of Chinese listed companies, then it exposed the capital structure present situation and the existent question through debt level,debt structure and stock ownership financing those three aspects: the capital structure of Chinese listed company is unreasonable, the ratio of assets to liabilities is low, the proportion that current liabilities takes up in general liabilities is excessive, the bond financing scale is minor, Chinese listed companies are common existing stock right financing preference. Third, analyzing the data of 2005 by Eview software, it had exposed the inherent dependence between the company capital structure and the company achievements, and linking existent question of Chinese listed companies we mentioned before, it had proposed the measure of optimizing the capital structure and enhancing the company achievements: While we gradually change the market company stockholder's rights financing preference and encourage enterprise first to consider creditor's rights financing, we should strengthen "the hard restraint" mechanism of creditor's rights financing, perfectly consummate the government structure of the creditor's rights, fully display the financial release lever's function of promoting the company achievements aspect.