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The analysis of capital structure of stakeholder mode

Author: SuHongMin From: www.yourpaper.net Posted: 2010-07-12 07:06:25 Read:

Abstract: the new perspective of based on the stakeholder interaction, financing decision and re-examine the definition of enterprise, put forward to consider including shareholders all "inputs" interests "financial contract structure" in the "financial contract structure, deepening the connotation of" capital "structure", expanding the extension of "capital structure", is a new interpretation of the "capital structure" logic of stakeholders' cooperation.
the keyword in : financial contract structure; capital structure; analysis of

financing decision making is a key part of enterprise financial management, but also an important content of enterprise management.At present more popular on financing decision theory is "capital structure" theory.But this theory foot based on "base model of corporate governance shareholder first" 6, and more concentrated in the "financial capital", narrow research scope, research content of solitary, law to only consider the interests of the shareholders.In recent years, a new model of corporate governance "and" stakeholders more theory and practice circles.The theory is that, as the "input", stakeholders and enterprise signed by the explicit or implicit contract, put their capital to the enterprise (including financial and non-financial), they have to obtain benefits from production results in claim."Financial contract structure" is in the enterprise management mode, the previous "re-interpretation of the capital structure".
, a financial contract structure and capital structure
(a) the concept of comparison
At present, in the field of finance "capital structure" mainly discusses the financial capital from different sources, we generally take the narrow concept, namely the composition and proportion of long-term debt capital and equity capital relationship.
The early capital structure theory mainly has three kinds of theories: the theory of net income, net operating income theory and traditional theory.Among them, according to theory of net income, debt can reduce the industry cost of capital, debt rate is high, the value of the enterprise more.Net operating income theory, no matter how the change of financial leverage, flail weighted average enterprises in costs are fixed, so the total value of the enterprise is also invariant.According to traditional theory, the enterprise use financial leverage to have a "degree", more than the "degree", rise in the cost of equity can not be offset by the low cost of debt, the weighted average cost of capital to rise.The above three kinds of early capital structure theory has its one-sidedness and limitation.Net income theory while taking into account the benefit on financial leverage, but ignored the financial risk; the net operating income approach while recognizing that debt ratio changes will produce the financial risk of the enterprise, will also affect the weighted average cost of capital of enterprises, but it does not recognize the weighted average cost of capital of enterprises may not be one one constant; the traditional the theory provides a good visual to us, but unfortunately it was not enough to support the theory, because it is the cost of the cognitive limitation.In short, the early capital structure theory is the primary understanding of the capital structure theory, have not formed the theory of capital structure system.Until the last century 70's, Professor Miller proposed the MM capital structure theory, the theory for the first time to reveal the relationship between Ding lever used and the cost of capital and enterprise value, the founder of the modern capital structure theory and modern financial theory research of the road, the methodology significance profound influence.
Abstract the theory of capital structure within the overall theoretical structure, has a theoretical significance, but do not be equal to can be directly applied to practice.Capital structure is not fully consider the complexity of capital input of the incomplete contract and enterprise.With the advent of principal-agent theory, contract theory, property rights theory, stakeholder theory, a new theory, especially the practice of corporate governance "stakeholder model" of the traditional "shareholder primacy model" alternative, as the capital structure theory to guide practice potential will adjust the system.While the financial contract structure is the one one time development request, to explain the capital structure.Financial contract is refers to the enterprise in the financial management process, to achieve a reasonable expectation, in the basis of equality and mutual benefit and all rights to establish a right circulation relationship.The subject of the right is the direct stakeholders in the enterprise, including managers, employees, shareholders, creditors, suppliers and customers.Financial contract structure refers to the capital enterprises all direct stakeholder input and the proportion of claims and the relationship between the proportion of.
Financial contract structure the enterprise capital widening for all elements of business investment, including shareholders and creditors into financial capital, the human capital investment managers and employees, suppliers and customers into the capital market.These capital to enterprises, it appears as a special assets of enterprise.And the specialized level is higher, the diversion of the possibility is smaller.So the factors of capital input to specific degree according to their investment proportion and investment asset requirements benefits.
(two) the connotation comparison of
Financial contract signing procedures as a legal assumption of enterprises and shareholders and operators signed a financial contract, thus forming the shareholder and the operator as the center of the center contractor.The center contractor with creditors, suppliers and customers to sign two levels of financial contract, resulting in the formation of the enterprise as the center, financial contract system stakeholders as the main body.Enterprise financial contract framework is shown in figure 1.

As seen from figure L, the enterprise is "different individuals, a legal entity is composed of one one complex set of explicit and implicit contract intersection" (Jansen and Mclean, 1976).In this legal entity, intersection of the contract both enterprises and shareholders and operators signed contract subjects, but also by the main contractor and employees, creditors, suppliers and customers signed two contracts.In this way, enterprises have become a series of complex contract intersection of the carrier, has become a personification of the organization, it has a series of characteristics of natural person, able to consciously make a rational decision.
Financial contract forms are diverse, with equity contract, debt contract, labor contract, in many forms, enterprise and shareholders equity contract and signed by the enterprise and the creditors signed the debt contract has quite large proportion.Usually enterprise needs a large amount of capital injection in the establishment, investors of enterprises, become the corporate shareholders.Enterprises and investors signed the equity contract, shareholders' capital to flow into the enterprise after curing for a large number of professional asset, such as proprietary equipment, plant and so on.Compared with other contract other than shareholders into (creditors, suppliers), because the more preference for cash, risk aversion, so use the forms of contract liabilities.In each stage of enterprise creation, growth, prosperity, equity contracts and debt contracts throughout.
However, capital structure only emphasizes shareholder's control rights and residual claim right of creditors, just enjoy a fixed repayment.While the financial contract structure, the firm is a nexus consortium, all inputs are devoted to the enterprise specialized assets, therefore, they have the right to participate in the supervision enterprises, participate in the distribution of enterprise residual.Moreover, this allocation can reduce financial contract costs.The shareholder is the one of the people, according to the information asymmetry theory if only the given right of supervision and the surplus share shareholder, because shareholders on the supervision of information disadvantage, so the high cost of supervision.Also because of asymmetric information and incomplete contracts, suppliers and employees if it is signed with the enterprises with fixed repayment of financial contract, they may well be delivered in the contract signed after the agreed amount is less than the contract, the poor quality of the goods or produce "lazy" behavior but if given its share the residual rights, because their gains as earnings changes they have the motivation to supervise the managers of great business activities.Moreover, they can also get information monitoring activities to some extent to other parties, so as to avoid duplication of supervision, reduce the cost of contract.
Thus, financial contract structure not only covers the core content of capital structure, but also greatly deepened the connotation of capital structure.
(three) epitaxial
From the concept of capital structure and financial contract structure and expression, as can be seen, the two included in the scope of the latter is obviously different, the scope is much broader corporate capital structure theory and is the main financial capital structure, financial contract structure on the complex consists of non-human capital and human capital.
Traditional economics theory does not recognize the great function of human capital
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