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On the analysis of the capital structure of listed companies in China

Author: PengManLan From: www.yourpaper.net Posted: 2010-07-11 03:27:52 Read:
Papers Key words: capital structure optimization
Abstracts: China's state-owned listed companies as the research object, the optimization of the capital structure of Chinese listed companies from the split share structure, the development of the bond market, and build risk exit mechanism-pronged approach to the analysis of the capital structure of the status quo, to make some suggestions to the optimization of the capital structure .
First, the capital structure of listed companies in China asked intestinal
Pecking order theory of capital structure ", when companies need to raise funds, the internal financing for the first choice, followed by external financing, external financing, the first bond financing, then, is the new equity financing. Select obviously showing strong preferences for equity financing tendency in our country, the financing behavior of listed companies, mainly as follows: unreasonable debt structure, high level of current liabilities; gearing ratio of listed companies in China is low compared to the other types of businesses financing the proportion of the stock market is higher than the proportion of the debt market financing; shares of listed companies is highly concentrated ownership structure presented due to the dominance of the phenomenon.
Second, the capital structure of listed companies in China Analysis
(A) the development of China's capital market imperfections. From the current capital market point of view, the development of China's corporate bond market and the stock market is extremely uneven, non-market characteristics. Specific performance: the underdeveloped bond market, the corporate bond market than the stock market is relatively slow, a single mode of financing, the lack of strong support from the money market. Fewer financial instruments. The lack that reflect shares economic essential requirements and adapt to the different economic development levels of the multi-level market system and market structure.
(B) From the point of view of the agency costs analysis
Defects of a corporate governance structure of listed companies. As shares of major shareholders generally can not be traded, shares in circulation gains are less likely to improve the net assets per share, so the major shareholders took advantage of the direct possession of the funds of listed companies, related party transactions, dividends, secured loans interests to grab. In addition, China's laws and regulations are not perfect, the controlling shareholder of unfettered, so the cost is very low and can become their preferred mode of financing as soon as possible to improve the equity financing of listed companies net assets per share.
2. Listed company managers to maximize the interests of the individual pursuit of lower money income managers of listed companies in China, good or bad does not matter and business benefits; income managers control benefits, such remuneration system managers can not economic interests and economic interests in close connection with the lack of motivation for the executives of listed companies in China to strive for the pursuit of maximizing shareholder value.
(C) the financing of the cost of capital analysis
1 listed companies with low capital gains rate limiting endogenous financing. Factors such as the size of the enterprise endogenous financing capacity depends on the level of corporate profits, the size of the net assets and investors expected. Most of the listed companies in China due to the reform of the corporate governance structure has not kept up a number of factors, resulted in generally lower performance of listed companies, and a widespread decline in the average yield. Almost no Endogenous funds available, lower or even losses, the level of performance of listed companies in China severely limits the proportion of listed companies in China's internal financing. 2 low cost of equity financing. Due to the constraints of China's listed companies do not have to dividends payable to investors, as opposed to the hard constraints for bond financing debt service due, the cost of equity financing in real terms for the controlling shareholders and executives of listed companies. a "zero-cost" funds. This weakened to some extent the motivation to strengthen management of listed companies. Enhanced its desire to Listed Companies' Resources profit.
(D) from the perspective of information asymmetry cost analysis
Information disclosure of listed companies in China are not up to standard, investors and corporate "insiders" both information asymmetries serious. "Internal" and sometimes deliberately caused by the monopoly of information, so they issued at a premium to increase their investment in the listed company's share price is overvalued, thereby reducing the cost of information, access to information gains. Third, to optimize the capital structure of listed companies in China's countermeasures
Capital structure should reflect the corporate finance and the ultimate goal, namely to maximize enterprise value. Showing a negative correlation between the capital structure and performance of the listed companies in China, is China's listed companies management mechanism is not perfect, and one of the manifestations of internal control is a very serious problem. Therefore, we must take the appropriate measures to change the existing corporate governance mechanisms and capital market environment
(A) activate the corporate bond market
China's corporate bond market, a serious imbalance in the proportion of the development of the stock market, the enterprise is difficult to raise funds from the bond market, is a major cause of low asset-liability ratio of China's listed companies. The strong government legal restrictions and the liquidity of the corporate bond hinder the expansion of the scale of China's corporate bond market. Therefore, at this stage, we should look at the following areas to promote the development of China's bond market: First, the government should play down or phasing out plan scale management to amend and improve relevant laws and regulations. Second, actively play the role of intermediary institutions to improve the quality of credit ratings judge, and strengthen social supervision. Finally, to improve the liquidity of corporate bonds, the bond trading market into a virtuous circle. Effective means to activate China's bond market to enhance the liquidity of corporate bonds in China.
(B) to solve the split share
Set the problem of the existence of the equity division, the state-owned shares of listed companies in China "due to the dominance of state-owned shareholders" Absence "scattered distribution of public shares, listed companies' internal control "a very serious problem, the shareholding structure of governance performance. Exit through the introduction of state-owned shares, and enhance the proportion of the outstanding shares of the introduction of a new principal investors in listed companies in China's internal form shares of checks and balances "mechanism. Optimize the equity structure of listed companies, and to promote sound corporate governance structure and improvement. Equity sub-set problem solutions to optimize the equity structure of listed companies in China is undoubtedly of great significance. Specific performance for the following aspects: First of all, is conducive to the promotion of the diversification of equity, to solve the listed companies shares "due to the dominance of the" problem, reduce the occurrence of the phenomenon of "internal control", and will help to improve and improve the securities market the overall operating efficiency, give full play to the function of stock market rational allocation of resources. Second, it helps reduce the degree of ownership concentration of listed companies, the equity structure of listed companies in a diversified, diversified, the formation of the corporate governance structure of checks and balances. With the gradual decline in the proportion of state-owned shares, the social corporate shareholders stake increase, it would introduce a new social institutional investors, and ultimately to break the pattern of internal control of the listed company. Finally, the managers the opportunity to increase the stake will increase its monetary income and business interests are closely related, and to resolve the status of the managers of listed companies in China lack of long-term incentive. Gradually returned to the constraints and incentives of the modern company, to further improve the corporate governance structure of listed companies in China.
(3) improve the listed companies delisting and bankruptcy system
Improve listed companies delisting and bankruptcy system is one of the important measures to promote risk awareness, and improve the performance of the company listed company, is able to effectively leverage the prerequisite. The M & A market is a market for corporate control external control mechanisms, mergers and acquisitions of listed companies as a major part of the company's external control mechanisms, to optimize the equity structure of listed companies in China, the address listed companies serious internal control problems, thereby improving our the corporate governance structure of listed companies, is undoubtedly of great significance to improve the performance of listed companies.
(D) to strengthen other aspects of the company's legal supervision
1. Strengthen the allotment of funds usage tracking to establish equity financing files, a single point of control changed to the supervision of the whole process of allotment approval. 2. Appropriate restrictions do not distribute cash dividends and simply send the allotment behavior. The were listed company approval system of issuing new shares for the approval system, decided to equity financing by listed companies based on capital market conditions and the actual situation, the number of 04. Establish a number of indicators assessment listed companies achieved the standard of the allotment and issuance of new shares eligible
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