Research on the Optimization of Capital Structure and Financing Behavior of Listed Companies during the Transformation Period

Author: Liu Song
Publisher:
Publish Date: 2005-09-01
Features: This book takes a developmental perspective, placing the capital structure optimization of listed companies within the context of China's economic system transition. It studies the issue from a dynamic rather than a static viewpoint, constructing a research framework that includes fundamental theories, financing systems, financing behaviors, capital structure, and institutional innovation. With financing behavior as the starting point, it examines the evolution of China's financing systems and environments, as well as the changes in financing behaviors. It investigates the influencing factors of capital structure formation and the distinct characteristics of different industries among listed companies, analyzing equity financing, debt financing, and governance efficiency to explore the overall characteristics and developmental patterns of capital structure. From the perspectives of institutional reform and property rights, it reveals the problems in the capital structure of listed companies and proposes solutions. This is a more comprehensive and systematic research framework rather than one focused on a single aspect, covering more content, adopting a fresher perspective, and adapting to the evolving trends of capital structure among listed companies.
Secondly, this book emphasizes the integration of qualitative and quantitative analysis. Based on theoretical analysis, it employs principal component analysis and multiple regression analysis to study capital structure and its influencing factors using data disclosed by Chinese listed companies. It extracts principal components from the influencing factors to establish a comprehensive evaluation model for the capital structure of listed companies in China. Using this model, it determines the optimal capital structure range, achieving high credibility in the analysis. The book provides detailed explanations and introductions on how to model and solve for the optimal capital structure range, making it highly operational.
Furthermore, this book adopts a bidirectional expansion analysis of listed companies' capital structure. Existing analyses are typically unidirectional, examining how corporate financing behavior affects financing structure, financing structure influences capital structure, capital structure impacts governance structure, and governance structure affects governance performance. This book designs a new research scheme that not only studies the unidirectional influence of financing behavior on governance performance but also investigates the reverse effects of governance performance on governance structure, capital structure, and financing behavior. By comprehensively analyzing the mutual influence effects in both directions, it provides more information and research findings for studying capital structure optimization.
When exploring optimization strategies for listed companies' capital structure, this book does not only seek solutions from within the company but also establishes a framework for institutional innovation in capital structure optimization, focusing on both external reforms and institutional construction, as well as internal restructuring of incentives and supervision mechanisms. This book specifically studies the optimization of capital structure among listed companies in China and does not address the optimization of capital structure for non-listed companies. However, the capital structure theories introduced, the research framework established, and the comprehensive evaluation model for capital structure offer valuable insights for studying the optimization of capital structure among non-listed companies.
As a research outcome, this book inevitably has some shortcomings and imperfections. At the time of Liu Song's decision to publish this book, as his doctoral supervisor, I am deeply pleased. On one hand, it is gratifying to see the fruits of his years of dedicated research made available to society for shared appreciation and to realize its social benefits. More importantly, publishing it provides a greater opportunity for peer experts and a broader readership to offer criticism and corrections, which will be immensely beneficial.