Study On The Heterogeneity Of Actual Controller And The Capital Structure

No matter what enterprise’s size is, thecapital structure is always the foundation of the enterprise.Expect capital stock, capital structure is also an important standard to measure the enterprise value. Different enterprises’capital structure is different. There are many factors affecting the capital structure, which not only from the macro level social and economic environment, but also from the micro level of company management, including the actual controllers. The actual controllers always have more decision-making power when making important decisions in a business, so theheterogeneity of actual controller may also affectthe capital structure of enterprise. In reality, whether theheterogeneity of actual controller will influence the capital structure? How do these features affect the capital structure of enterprise if this influence exists?This paper attempts to answer these questions.This paper uses the method of combining normative research and empirical research, research on the relationship between heterogeneity of actual controller and capital structure.In order to do further study about which features of the actual controller would affect the capital structure,this paper selects the characteristics of actual control including age, gender, degree, style, risk preference, ownership, degree of two rights separation and whether he works as the chairman or general manager or not.Firstly, this paper systematically comb and summarize the domestic and foreign existing research on the capital structure theory,the influence factors of enterprise capital structure and the relationship between the capital structure and heterogeneity of actual controller;secondly based on the signal transmission, and the principal-agent theory and behavioral finance theory to analyze the relationship between heterogeneity of actual controller and capital structure. Then this paperputs forward the hypothesis. In the part of empirical research, this paper selects two A shares listing Corporation of Shanghai and Shenzhen stock exchange in 2009-2013 as the research sample, and manually collect the stats of heterogeneity of actual controller. And this paper analyzes the relationship between heterogeneity of actual controller and capital structure by the "random effect model",so as to provide some useful reference to theenterprise about how to make the ideal capital structure. Finally, based on the research results, this paper can help to improve risk awareness of actual controller and positive effects on the formulation of corporate capital structure. In addition, this paper also summaries the inadequacies ofthe research and prospects the future research direction.This study found that:(1) the age and gender of actual controller is positively related to the level of debt; when actual controller is a natural person, the ownership of actual controller is negatively related to the level of debt; when actual controller works as the chairman or general manager, thelevel of debt is lower;(2) risk preference of actual controller is positively related to the level of debt; when actual controller is legal person, the ownership of actual controller is positively related to the level of debt; (3) age and thedegree of two rights separation of actual controller is not significantrelated to the level of debt. The contribution of this paper is to measure heterogeneity ofactual controllerthrough a more comprehensive way, and analyzes the relationship between heterogeneity of actual controller and capital structure,at the same time, also provides a new perspective for research of thecapital structure. At last, this paper puts forward the corresponding policy recommendations about capital structure, In order to provide reference for listing Corporation about how tomake a reasonable capital structure.