Research On The Capital Structure Of The Listed Companies Of Automobile Manufacturing In China

The problem of capital structure is an important one in the enterprise's financial decisions. It is not only closely supervised by the managers, but also observed by the investors. As the pioneer of the reform of the institute of enterprises, the listed companies of China are the first to be tested by the market. The research of the enterprise's behavior is not only important to the management of the listed companies, but also important to the healthy development of the whole market. Through the study of this article targeting on the financial structure of the listed companies of automobile-manufacture, we can not only find out the characteristics of the listed companies, but also have a comprehensive understanding of the bases of the capital structure determination, as well as the factors that have impact on financial structure decision. All of them will be the reliable basis of the proper design of the companies'institutions.In this article, the author chooses the listed companies of automobile manufacturing as the research sample. The author verifies the financing-order of listed companies of China with demonstration, and analyses the factors which impact the financing structure of the companies. The research conclusion indicates: the listed companies of china choose equity-financing first, bond-financing second; in the bond-financing, the companies prefer to current liabilities; the factors which impact the financing structure are the profit, the growth, the dividend, the equity-structure, the repayment-ability and the bankruptcy-cost. Next the author analyses the financing-cost of the listed companies of China. The conclusion is that bond-financing cost is distinctly lower than the equity-financing cost. In the end, the author put forward some advice to optimize the financing-structure of the listed companies of China.