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The Comparison And Analysis Of Capital Structure Of Listed Companies Of IT Industry And Motor Industry In China

Posted on:2005-05-19Degree:MasterType:Thesis
Country:ChinaCandidate:X W ZhangFull Text:PDF
GTID:2156360122999291Subject:Business Administration
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At present, the economic performance of most of state-owned business enterprises in our country is worse, a very important reason is that they do not make a point of that the decision of capital structure is long-term, strategic and scientific, resulting in the mistake of capital structure decision. So the capital structure must be optimized.Now, the information technology industry and the automobile industry are focus of very much.As one of most important industries of our country, the information technology industry has been keeping the high-speed development. But compared with international advanced level, our IT industry has a long distance at the core technique, industrial structure, management level, comprehensive performance, etc. At the same time, the development of the automobile industry is during a quickest period. Doubtless, the development quality of these two industries has a very important influence to the total economy of our country. Therefore,the research of capital structure of these two industries should be instructive to us.This thesis will do a empirical analysis to the factor of influencing capital structure of listed company of these two industries on the basis of the view existing at the domestic and international research, combining the data and documents that we can get, and offer some advice for the decision of capital structure. I. Capital Structure theory1. The beginning of modern capital structure.The classical capital structure theory began from David┬ĚDulante in 1952. The content mainly include: net income theory, net operation income theory and traditional theory.The modern capital structure theory began with the MM theory.2. The financial balance theory3. Non-symmetrical information theory and the capital structure theory II. The empirical analysis of capital structure of listed companies of these two industries.1. Sample In order to analyze the influence of industrial factor, I select 60 listed companies in IT industry and 29 in auto industry, which were listed before 2002 on Shenzhen city and Shanghai city 's stock market.The industrial ownership of all the companies based on the authorities announcement of SCRC. The companies that issue B or H shares, is ST or PT style listed companies, its Debt ratio is over 100% and belongs to comprehensive company have been get rid of.2. VariableI choose capital structure, real income tax rate, increase ratio of total capital, increase ratio of margin after tax, margin percentage of sale revenue, return on equity, income of each share, ratio of fix assets and equity, inventory turn over, accounts receivable turn over, assets turn over, quick ratio, current ratio, return on assets, increase ratio of sale revenue and logarithm value of total capital, etc as variables, sum amounts to 16.3. Empirical analysisI use the method of stepwise regression to analysis the relationship between the capital structure and other variables. The regression equation of standardized coefficient is: IT industry: Debt ratio=0.312*increase ratio of total capital-0.676* current ratio Auto industry:Debt ratio=0.344*increase ratio of total capital-0.394*margin percentage of sale revenue+0.378*assets turn over-0.722* inventory turn over-0.929* current ratioIII. Conclusion1. In the IT industry, the capital structure and increase ratio of total capital is positive correlation. It shows that increasing character influences the policy of capital structure deeply.The capital structure and current ratio is negative correlation and the weight is fairly great. The reason is that the assets of IT industry are mainly formed from current assets. The higher the current ratio is, the better the ability of paying back is.2. In the auto industry, the capital structure and increase ratio of total capital is positive correlation. The reason is the expansion of industry needs more funds.The margin percentage of sale revenue and capital structure is negative correlation. The stro...
Keywords/Search Tags:Comparison
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