Empirical Study Of Capital Structure Determinants Of Chinese Listed Companies In Two Sectors

Capital structure theory is a focus and frontier in Modern Financial Economics and Financial Management areas. Researches on this problem have been lasted for more than forty years since Modigliani and Miller put forward famous MM-Irrelevant theory. Theoretically,many financial economists from domestic and abroad had deeply studied capital structure of companies from varies aspects and formed varies kind of theories about capital structure. Empirically, many scholars had analysed capital structure of companies from some countries by statistics and gotten some conclusions. However, there are not comparatively so much researches on the companies of Chinese stock market up till now, not to mention about empirically study on the relationship between capital structure and its determinants. During their studies, the determinants in most papers are not full covered. Although some paper studied the capital structure determinants of Chinese listed companies, they were more concerned on the macro-economy of stock market. So they did not make much sense on the operation of enterprises. This paper is concerned about the comparable analysis on capital structure of Chinese listed companies in chemical and electronics sectors and the paper draws some valuable conclusions. By using these conclusions in the real world, the paper solved some problems during my working. Finally, some suggestions about the capital structure of Chinese listed companies have been provided in the paper.Firstly, the paper reviewed the capital structure theory and some comments were given. Then it evaluated the effects and functions of capital structure, and qualitatively analysed capital structure determinants. After that, the paper discussed the situation of Chinese capital market and the reasons.The paper chose the data from Chinese listed companies in two typical sectors, and studied the capital structure and capital structure determinants in each sector by way of statistics. Some valuable conclusions have been drawn out. The empirical study of this paper shows that the relationship between capital structure and its determinants of listed companies in Chinese stock market is obviously affected by sectors and characteristics of capital structure in different sectors are much different. Beside that, the way of debt financing is mainly by short-term liability among Chinese listed companies. The paper also put regression analysis on the relationship between capital structure and its determinants of Chinese listed companies in two sectors and got their statistics relationship to debt ratioand long-term debt ratio by using of SPSS software.Then, the paper studied the problems of capital structure of some companies on my job by using the conclusions of empirical study. The measures of solving the problems have been pertinently provided in the paper.Finally, the paper brought forward some suggestions and countermeasures about enhancing the micro economic management of capital structure and macro economic policy according to the conclusions from empirical study and the situation of capital market in our countries,all these things are valuable in realistic application...