The Study On Capital Structure And Its Optimization Of Chinese Companies

The capital structure influences the administration structure of enterprises directly and it even influences the financing cost and market value of enterprises. It concerns subsistence and development of the enterprises whether the capital structure is reasonable or not. Since the foundation of stock markets of Shanghai and Shenzhen at the beginning of 1990's, the capital markets have been developing rapidly. Regarding to more resources of capital raise, it is more meaningful and valuable to study on determinants and the optimization problem of capital structure of companies in our country.Firstly, on the basis of sufficient study of relative papers on capital structure both home and abroad, this paper introduces the relative concepts and the development history of capital structure theories.Secondly, this paper selects some initial determinants of capital structure according to the documents of Chinese and western theoretical and empirical studies, and then adopts one-way ANOVA to find out whether the industry factor is the main determinant or not. Based on the result, we select three industries to conduct a factor analysis to find out the main determinants of the capital structure of these three industries. Then the stepwise regression has been used to determine the relationship between the determinants and the capital structure with the independents of determinants.Finally, we introduce the targets and ways of optimization of capital structure, and then some suggestions on the optimization of capital structure of companies have been given based on the above analysis and some plans on further study has been discussed.