A Study Of Capital Structure Of China's Listed Company

Based on the existing theories of capital structure and by the review of the capital structure of China's listed companies, this paper does empirical study to the capital structure of listed companies by vast amount of statistics date, and draws the conclusion that listed companies in China are inclined to equity financing. As the basic characteristic of the China's listed companies, equity financing preference has a bad influence on listed companies and capital markets. This paper explains the reason of equity financing preference in the aspects of cost and rules, and shows the exist of equity financing preference has its Certainty.Further, the paper makes qualitative analysis and quantitative analysis on the factors that will affect the capital structure of companies. By using the mathematics model, it puts forward the underlying Influential factors and gives some suggestions to optimize capital structure.