Private Listed Company’s Capital Structure Influencing Factor Demonstration Studies

Capital structure issues have been a hot issue to domestic and foreign scholars, theWestern capital structure theory and empirical studies have been more mature, domesticscholars also have done a lot of research. Because of the difference of special nature ofenterprise property right system, the private companies compare with the state-owned listedcompanies in the choice of financing is likely to be large differences, the capital structure ofthe influencing factors are not the same. This paper argues the need of research for China’sprivate listed company’s capital structure influencing factors, so as to make somerecommendations to make private enterprises grow longer and healthier.In this paper, based on capital structure theory and the systematic study of foreign anddomestic literatures, this paper analysis the private company’s capital structure influencingfactors in-depth and make the empirical studies, finally this paper makes somerecommendations to make private enterprises grow longer and healthier. This paper focuseson special influencing factors analysis, concluding family governance, family control risksand ownership structure factors. The conclusions are: the separate level of company chairmanand managing ownership and the intangible-assets-ratio of family-controlled-listed companieshave a positive correlation with debt-asset-ratio; the executives stake, the ownershipconcentration and the proportion of tradable shares of private companies have a positivecorrelation with debt-asset-ratio. Finally, according to the results of empirical analysis andChina’s actual conditions, this paper presents optimization of China’s private listedcompany’s capital structure policy recommendations. These are: enhancing the constructionof the professional managers market; introducing strategic investors opportunely; developingthe corporate bond market.