Research On The Capital Structure Of Power Industry Listed Companies In China

Since Modigliani and Miller published their seminal paper in 1958, the issue of capital structure has generated great interests among financial academics and practices. The MM supposes that a firm's capital structure is not correlated with its market value with the conditions that there are no trade cost, tax and information asymmetry. The MM theory just describes the ideal state. From then on, many scholars release some theoretical hypothesis of MM to meet the realities. And they find that there is nearly relationship between the capital structure and firm's market value. Empirical analyses of the determinants of firms' capital structure are also conducted.After being researched continuously, the theories on the capital structure become relatively perfect. However, it has been shown that the capital structure of the listed companies in China conflicted with these theories. In view of these issues, the capital structure of power industry listed companies was systematically studied in this dissertation, and the main contents are presented as follows.Chapter 1 is introduction. This part concludes: the background, papers structure, research tools, research methods, Innovation and inadequate.Chapter 2 is the theories on the capital structure. In order to analyze the capital structure of the power industry listed companies in our country, we review all kinds of theories of different schools on the capital structure, and mainly introduce the agent models, the signal models, the pecking order models and the motivation theory.In Chapter 3, we will outline the characteristics of the power industry, analysis the current situation of the power industry listed companies'capital structure and discuss the system basis of listed companies. The capital structure of power industry listed companies closely related to the degree of the market. The degree of market is the overall performance of social and economic conditions. Changes in China's state-owned enterprises financing system and the capital market system will contribute to the understanding of the capital structure of power industry listed companies.Chapter 4 is the analysis of the Capital Structure factors in Chinese power industry listed companies. In this part, using factor analysis to reduce 14 original variables to 6 indicators. Then using regression analysis to identify the impact indicators of the capital structure. At last, establishing the capital structure decision-making mode of the power industry listed companies.Chapter 5 analyzes the capital structure of power industry listed companies how to impact on corporate performance. Corporate performance is the goal of optimizing capital structure, and the judgment of capital structure optimization is whether or not. In this part, we use the total rate of return as the indicator of company's performance measurement and use debt-to-asset ratio as the indicator of measuring capital structure. Then we use quadratic function mode and linear model to explore the relationship between the capital structure and corporate performance.Chapter 6 is the summary of dissertation. In this part, we explain the main contents, the main conclusions, the Inadequate, the prospects for future research. The main conclusions are presented as follows:Power industry asset liability ratio maintains stability and is not much different from the average rate of all industries. Power industry's long-term debt-to-asset ratio is much higher than the average level of all trades. Power industry listed company's long-term debt-to-asset ratio and the debt-to-asset ratio below the average of all industries, long-term debt-to-asset ratio and the debt-to-asset ratio have experienced a process which rise first and then drop.The debt-to-asset ratio of power industry listed companies in china is negatively correlated with the profitability indicator, the short-term solvency indicator, the equity structure indicator, management indicator and it is related with the size & asset structure indicator, the growth indicator. The long-term debt-to-asset ratio of power industry listed companies in china is negatively correlated with the management indicator and it is related with the size & asset structure indicator, the growth indicator. Taxes have no significant effect on the capital structure of power industry listed companies in china.There is a critical value theory 39.4%. The company's debt-to-asset ratio is related with company performance blow it and negative related with company performance above it. Capital Structure of Listed Companies in China's power industry has not reached the optimal values.