An Empirical Study On Industrial Capital Structure Of China's Listed Companies

The theory of corporate capital structure deals with the determination of the ratio among equity capital, stock and debt to maximize corporate market value. The most important part of the theory is to set up an optimum capital structure for the corporate and to find out those factors that have impacts on the formation of corporate capital structure. Many economists have proved that the industry of a corporate has a great influence on the formation of its capital structure.Theoretically, the industry relates to corporate financing ability, tax, and the probability of bankruptcy, thus naturally the optimum capital structure is influenced by some variable of industry. But, we can't get the clear conclusion that the corporate capital structure is remarkable correlative with its industry according to some empirical results. These studies used the different swatches and methods and got the different conclusions.A multi-regression analytical model has been built in this thesis, testing industrial difference of corporate capital structure and determined factors of impacting capital structure selection by use of many kinds of methods, such as main factorial analysis. Empirical results suggest that there is a remarkable different capital structure between different industries, and there is little difference in all kinds of capital structure of same industry. Some factors, such as income mobility, profitability, growth, tangible asset's value have a little impact on corporate capital structure selection, testifying that China's listed companies' specific system arrangement have an important impact on capital structure selection.