An Empirical Study On Industrial Capital Structure Of China's Listed Companies

The nature of industry is one of the most important determinants of debt-equity mix of a company. This thesis aims at the industrial characteristics of capital structure of China's listed companies. By an empirical study of cross-sectional and time series tests, we find some evidences on the existence and determinants of inter-industry differences in leverage. We also trace the changes of capital structure in the long run. Some of them are in accordance with the previous researches, but some deny. Our findings suggest that although some of the insights from modern theory are portable in our country, much remains to be done to understand the impact of different industrial features on capital structure choices, especially for investors, operators and supervisors.