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Research on the Capital Structure of Listed Companies of Financial and Insurance Industry Impact on Company Performance

Author: WangBo
Tutor: SunYanHua
School: Hunan Agricultural University
Course: Business management
Keywords: Finance and insurance listed companies capital structure company performance
CLC: F275
Type: Master's thesis
Year: 2013
Downloads: 7
Quote: 0
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Abstract


A reasonable capital structure helps regulate corporate behavior, improve corporate value.On capital structure issue has been studied and discussed scholars hot issue, after a long discussion, the Western capital structure theory have been more perfect.Our scholars have done a lot of research on the capital structure, but because of the particularity of financial and insurance industry, the financial capital structure of the insurance industry is still relatively small.Since the reform and opening up, the rapid development of China’s national economy, finance and insurance industries along its produce, and has become the fastest growing and most rapid system construction industries.Today, finance and insurance industry has become the core of our national economic development industry, related to economic development and social stability.So, through the financial and insurance capital structure of listed companies would not affect the performance of the company and how they affect the company’s results for the research, helps to optimize the financial and insurance industry capital structure of listed companies, to maximize enterprise value, and enhance the competitiveness of financial and insurance companies, to promote the rapid development of the financial industry.This paper first reviews the capital structure and corporate performance of the basic theory, combing and analyze domestic and international capital structure theory research, finance and insurance for China Listed Companies’Capital Structure on Firm Performance impact studies provide theoretical guidance.Then this article analyzes the listed companies in China’s financial industry, the insurance capital structure and corporate performance status and found that China’s financial industry capital structure of listed companies exist high debt ratio, lack of liquidity and solvency of the lack of other issues, appropriate measures should be taken optimize the capital structure.And then this paper, in29of the Shanghai and Shenzhen listed companies financial and insurance2010-2012three-year data, using multiple regression analysis method empirical research, finance and insurance come to our capital structure of listed companies on business performance effects model.Through empirical research, the following conclusionsr(1) asset-liability ratio impact on firm performance is significantly negative, while the proportion of current liabilities and net assets yield was positively correlated;(2) The first is to determine the proportion of large shareholders of listed companies of China’s financial results of the insurance industry, the main factor, and with the negative correlation between the performance of the company;(3) Because of its size, the greater the overall strength of the stronger, the more stable income, debt sustainability is stronger, and thus firm size and firm performance were positively correlated.Finally, we combine the actual situation of China’s financial markets and the empirical results of the analysis proposed to optimize financial and insurance capital structure of listed companies counter-measures and suggestions.At the micro level should enhance the awareness of corporate capital structure management, the establishment of the capital structure of the dynamic adjustment mechanism;Optimize corporate governance structure, the largest shareholder controlling stake; choose a reasonable mode of financing, and improving internal financing capability;Focus on enterprise-scale, enterprise scale effect.At the macro level should deepen financial reform, improve the financial markets; vigorously develop the bond market and improve unreasonable debt structure; vigorously develop the stock market.

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CLC: > Economic > Economic planning and management > Enterprise economy > Corporate Financial Management
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