Theoretical, Practical, and Innovative Aspects of Equity Structure

Author: Zheng Decheng
Publisher:
Publish Date: 2003-01-01
Features: The analysis in this book is divided into six parts. The first part provides an overview of modern corporate theory, corporate governance theory, and structural theory, and introduces the research topic of this book. The second part analyzes the external conditions, historical development process, and characteristics of the formation of the German-Japanese model, the Anglo-American model, the relative control model, and the family model, thereby providing international references for subsequent analysis. The third part examines how the equity structure of state-owned enterprises, listed companies, and family-owned enterprises in China negatively affects the corporate governance mechanisms of listed companies through theoretical analysis, empirical analysis, and case studies. The fourth part reviews innovative methods for achieving equity optimization in China's capital market, such as asset restructuring, mergers and acquisitions, and auction-based issuance. The fifth part first analyzes the conditions of China's external market, then uses empirical methods and constructs regression models to argue that the relatively-held equity by legal person shareholders is a more reasonable equity structure arrangement that benefits the improvement of corporate governance in Chinese listed companies. It further calculates the optimal legal person holding ratio, optimal equity concentration, and maximum shareholder holding ratio through regression analysis, and points out that equity diversification is only applicable to competitive industries. Later, after fully analyzing the reduction-investment measures and various equity diversification plans, it proposes policy recommendations for optimizing the equity structure. The sixth part is a summary of the overall discussion.