An Empirical Research On The Influence On Capital Structure Of Ownership Structure Of Listed Manufacturing Industry In China

The theory of modern capital structure is originated in MM theory which is written by Modigliani and Miller in1958. Based on this, it produces a series of new capital structure theory, which provides theory basis for the scholars in domestic and foreign countries. Such as Jensen and Meckling developed the Principal-agent Theory in1976, which is the core theory on this paper. They think that when the company issued shares to outside, it will cause the company control and the right of management separation. Managers will likely use the convenience of authority to reduce the amount of effort work or add the extra on-the-job consumption to occupy external shareholder’s value. So the effect of the ownership structure and its attributes on capital structure became the hot topics.Because of the existence of special financial system and the property rights system, capital structure and ownership structure have some degree of distortion. As equity division reform, the financing behavior and the way of the listed companies in China has changed:equity of diversification, the scale of the financing enlarging, the proportion of internal financing rising. Whether these changes really state that the company’s financing behavior has independent, the financing system has been changed completely, change has achieved complete market and efficiency and capital structure problems is further improved. It is to be checked in the financial system and the property right system. Due to the different industry has the different economic support policy and the macro environment affect, it leads to the different reasonable equity structure. Because manufacturing is the pillar industry of our national’s economy, studying ownership structure’s influence on the capital structure has realistic significance.This thesis can be divided into six parts:Firstly, it gives an introduction of the research background, topics significance (theoretical meaning and practical meaning), the thinking and methods and the innovation points. Secondly, it shows the literature about the shareholding structure influencing the capital structure. Thirdly, it mainly explains the concept of the ownership structure and the capital structure, states the relevant to the capital structure of the theoretical basis. Fourthly, this part mainly explains the problems of equity structure and capital structure in manufacturing listed companies and analyses the problem of the capital structure. Fifth, this part explains the empirical analysis of shareholding structure’s impact on capital structure. At last, it raises the research conclusions and comes up with resolution about how to optimize equity structure, and put forward the limitations of this paper in the last.In this thesis, we select the experience data of Shenzhen A-share in2008-2011years, combining the normative research and empirical research. Through the normative research, we conclude the relevant research model, research hypothesis and the framework of shareholding structure’s influencing on capital structure. In empirical research, this paper selects the asset-liability ratio as explained variables, and uses linear regression model to test the shareholding structure’s influencing on the capital structure.This thesis has some contributions:(1) the paper combs the component of the ownership structure which has effect on the capital structure, and makes the empirical verification;(2) this paper analysis the manufacturing industry, and put forward the corresponding optimization opinion;(3) as equity division reform gradually over, institutional investor’s functions are becoming more and more important, this paper introduced the institutional investors as the variables.Of course, this thesis also has some problems, such as:this paper’s research data sample has a short time span, the area of the study just involves Shenzhen A shares of manufacturing listed companies, but other industry A shares, B shares and H shares in this paper are not covered. Even so, we also believe that the conclusion of this paper can help optimize capital structure.