Research On Capital Structure Choice Of Listed Companies In China

There are six chapters in this paper. Present theories and literatures on the capital structure are systematically studies in part one the introduction and part two the theoretical analysis of the capital structure. Part three focuses on the mechanism of the influence on the capital structure of the listed companies exerted by different industries. By empirical study in part four, the existence of the industrial difference in the capital structure of the listed companies and the former's influence on the formation and choice of the capital structure are analyzed. In part five, on the basis of the industrial difference, the elements that affect the capital structure are studied further. The last part includes the conclusion and proposes policy suggestion.The industrial differences of the listed companies are characterized by the capital composition, the industry life cycle, the competitive structure and the technology. These differences influence the formation of the capital structure by the seven approaches which are profitability, scale, non-debt tax shields, asset-backed value, growth, cash flow, and ownership concentration, and promote the company to adjust the capital structure to realize the maximum of the market value.By the empirical study on 571 listed companies of 11 industries from 2005 to 2010, this paper proves that there are obvious industrial differences in the process of capital structure choice of the listed companies in China and the existence of the difference is universal. Both the capital structure of the listed companies within the same industry and the difference of the capital structure of the listed companies from different industries are stable. The listed companies from different sections within a same industry have prominently diverse capital structure, but the difference is much lower than that of different industries. By the multiple regression analysis with the industrial element as dummy variable, the effect of the industrial element on the capital structure is 9.4% and to partition the industries by the life cycle can not significantly improve the model's explanatory power.The debt ratios of the samples are regarded as the independent variables, the six transmission channels of different industries as the dependent variables. Then a static model of the capital structure is constructed, and the stepwise regression analysis is carried out. The capital structure of the listed companies is only under small influence of the transmission elements, but each transmission element exerts different influence on the listed companies from different industries. Therefore, the listed companies have to take the elements in consideration in different orders on the basis of their industrial nature.