The Industry Features Of China's Listed Companies' Capital Structure

In the recent tens of years, China's listed companies have greatly increased in quality and quantity. At the same time, many problems emerged in this process. The capital structure and financing decisions can reflect lots of aspects of a company. The enhancement of China's listed companies, the regulation of China's capital market and the adjustment of macroeconomic all greatly depend on the analysis of different industries. Thus, the analysis to the the industry features of China's listed companies'capital structure is of great importance to China. The companies in the same industry have similar demand and supply elasticity, and they faced similar operational risks; at the same time, they may adapt similar technology and equipments. Industry is a function of scale, profitability, growth, volatility. So it is a feature that can reflect most of the other features. The companies in different industries are greatly different from each other in capital structure. Even if some industries have similar capital structure, their determinants may not be the same ones. This phenomenon may prove that the optimal capital structure does exist, for if not, the companies'capital structure should be randomly scattered. The financial decisions of companies are relevant to their value, and capital structure is related to the industries they belong to, so companies should first consider the industry they are in when make financing decisions, for the factors that can influence companies'capital structure may be greatly different from each other for similar companies in different companies. A factor that is not so important for one industry may be of great importance to the other.There are numerous factors that may possibly influence capital structure, and these factors may affect each other. It is a great challenge to summarize so many things in a single model. As a whole, the researches on capital structure still remain in a stage of simple observations and accumulations. The theories of capital structure are immature and lack relationships between each other. The existing theories can but only partially explain how the companies choose their capital structure and almost every theory of capital structures gets some supportive cases. Till nowadays, the researches on capital structure, empirical or theoretical ones, are far from enough. The'capital...