The Study On The Determinants Of Capital Structure: A Quantile Regression Approach

After the theory of MM, capital structure in the enterprise became to be an issues question in theoretical and practical field. The study on capital structure was in a new period. As the research on the capital structure developed, other new capital theories of the capital structure were found and many learners began to realize the importance of the determinants of capital structure. They discussed the determinants of capital structure in different ways to find out the relationship between the determinants and the capital structure.At first, the author reviews and explains the main ideas of capital structure theories, including Tradition Capital Structure Theories, MM Theory, Trade-off Theory, Principal Agent Theory, Signaling Theory, Pecking Order Theory, Corporate Control Theory and Dynamic Capital Structure Theory, etc, and summarizes some basic conclusions which have important reference value and meaning to analysis of our country capital structure on this basis.And then this paper proposes the determinants of capital structure on the basis of the theoretical analysis, summarizing the influences on the capital structure both from internal micro-elements and external macro-economic factors, theoretically discussed the influence direction of various determinants on the capital structure on decision-making, and then proposed hypothesis.Using panel date of listed companies, this paper analyzes it with a quantile regression approach, then draws a conclusion: internal micro-elements and GDP's real growth rate have an important influence on the capital structure of listed companies, other two external macro-economic factors'influence were unclear. Quantile regression results also show that every determinant have different influence on capital structure when it at different level. On the basis of the analysis,the author then gives the further explanations on the influence mechanism combining characters of china's listed companies.At last, this paper gives some suggestions on optimizing the capital structure of listed companies, which concerns two parts. Combining with the results of quantile regression, the article proposed some advices on the angle of the company size, profitability, growth, asset tangibility, asset liquidity, non-debt tax shield and macroeconomic factors to optimize the capital structure of listed companies in China.