Study On The Enterprise Financing Issue In The View Of Product Market Competition

From the perspective of product market competition to study corporate finance behaviorand capital structure strategy is based on the crossover study of corporate finance theory andindustrial organization theory. Forcusing on the product market competition, this paper analyzesenterprise financing behavior and financing structure strategic. Through the research of themarket process, it concludes that product market competition affects financing behavior as wellas financing structure. Meanwhile, the transformation of capital structure affects product marketcompetition and market structure through the influence of investment, financing, as well asfollow-up investment capacity.This paper establishes a two-step sequence game model to denotation capital and productmarkets mechanism, and gives a commentation of financial conservatism. Through the analysisof interaction of capital and product markets mechanism, the paper identify the fators whichinfluence decision-making and corporate finance behavior.In the empirical studies, By using the statistic methods and three consecutive years offinancial data of Listed Companies, it is supported that there is correlationship between productmarkets structure as well as ehavior and financing structure strategic of a corporation. Then thepaper reaches the conclusions that the factor Herfindahl-Hirschman-Index(HHI) which standsfor product markets structure and Return-of-Earning (ROE) which stands for product marketsperformance have a remarkably negative correlation with Debt-to-Asset Ratio. And it alsoindicates that relative to long-term liabilities ratio,short-term liabilities ratio is more sensitive tothe transformation of product market factor.