Capital structure of listed companies in China

Bc. Haining Gao

Bachelor's thesis

Abstract:

With the development of China’s capital market, the listed companies have grown, but more than the restructuring of listed companies from the state-owned enterprises, increasing their exposure to the capital structure issues, ownership structure, governance structure defects more prominent.For example, the gearing ratio is low and unstable, debt structure is irrational, the high level of current liabilities, shareholding structure is irrational, high proportion of state-owned shares, capital structure is lack of flexibility, as the main way to indirect financing, financing structure is irrational, preference for equity financing, etc. These problems have been severely affected and restricted the further development of listed companies, analyze the reasons, there are: particular stage of listed companies, between banks and enterprises “soft budget constraint”, equity financing costs low, too few constraints, information asymmetry, property is not clear, the reform of property rights system lag, lagging financing system, bank credit control, immature capital markets. This paper uses data analysis methods, capital structure of listed companies in China Problems and their causes a systematic, comprehensive analysis, and on this basis, puts forward the corresponding countermeasures and suggestions to optimize the hope to solve the capital of China’s listed companies structure unreasonable conditions help.

Abstract:

With the development of China’s capital market, the listed companies have grown, but more than the restructuring of listed companies from the state-owned enterprises, increasing their exposure to the capital structure issues, ownership structure, governance structure defects more prominent.For example, the gearing ratio is low and unstable, debt structure is irrational, the high level of current liabilities, shareholding structure is irrational, high proportion of state-owned shares, capital structure is lack of flexibility, as the main way to indirect financing, financing structure is irrational, preference for equity financing, etc. These problems have been severely affected and restricted the further development of listed companies, analyze the reasons, there are: particular stage of listed companies, between banks and enterprises “soft budget constraint”, equity financing costs low, too few constraints, information asymmetry, property is not clear, the reform of property rights system lag, lagging financing system, bank credit control, immature capital markets. This paper uses data analysis methods, capital structure of listed companies in China Problems and their causes a systematic, comprehensive analysis, and on this basis, puts forward the corresponding countermeasures and suggestions to optimize the hope to solve the capital of China’s listed companies structure unreasonable conditions help.

Keywords

listed companies, capital structure, financing structure, debt structure, Alibaba Group

Language used: English

Date on which the thesis was submitted / produced: 3. 5. 2017

Thesis defence

• Date of defence: 20. 6. 2017
• Supervisor: doc. RNDr. Petr Budinský, CSc.
• Reader: doc. Ing. Karel Havlíček, Ph.D.

University of Finance and Administration

Bachelor programme / field:
Economics and Management / Business Management and Corporate Finance