A Study On The Determinants Of Capital Structure From Chinese Listed Company-Based On The Dynamic Model

Based on the definition and theory of capital structure, the dissertation discusses capital structure characteristics of Chinese listed companies, and concentrates on studying the determinants of capital structures of Chinese listed companies from external determinants and firm characteristics. Through discussing the dynamic capital structure theory and dynamic capital structure model, this paper constructs a dynamic adjustment model of capital structure, and establishes a time-varying capital structure model by employing the dynamic panel data econometric method to make empirical study of Chinese listed companies. The results reveal that there is high trade cost in dynamic adjustment of capital structure of Chinese listed companies, which prevents the capital Structure of Chinese listed companies from being adjusted to the optimum capital structure. Besides, the paper also makes empirical study on the determinants of capital structure in the dynamic adjustment process.The whole dissertation is divided into eight chapters:Chapter 1. Introduction. This chapter discusses about background, incentives, underling theories, main content, methodology and framework. Definitions of relevant terms, improvements and innovations are also given.Chapter 2. Review of capital structure theory. We review all kinds of theory of different schools on the capital structure. This chapter emphatically introduces MM theory, static trade-off theory, product market theory, and theories under asymmetric information such as agency theory, signal models, pecking order theory and corporate control theory, with the aim of providing theoretical basis for analyzing the determinants of capital structures of Chinese listed companies.Chapter 3. Theoretical and empirical analysis of how external determinants affecting capital structure choice. The chapter firstly analyzes capital structure characteristics of Chinese listed companies by demonstration data during so many years, then analyzes external determinants of capital structures of Chinese listed companies—legal, financial market ,and Macro- surroundings such as rate, tax rate, inflation. And how does these external determinants affect the capital structure. Therefore the chapter indicates that the difference of external environment is so important to the capital structure that the corporate should adjust its capital structure...