Theoretical And Empirical Research On Influencing Factors Of Capital Structure Of Pharmaceutical Listed Companies In China

Capital structure theory has been concentratedly discussed and studied. Even though the study of influencing factors of capital structure has been deep, but the study of influencing factors of sector-specific companies'capital structure in the specific context is still little. The pharmaceutical industry had undergone a high-speed development phase a few years ago, but in recent years, because of the state's regulatory measures to strengthen the industry's profit levels makes the entire industry downturn, the decline in profitability is bound to affect the capital structure. This article tries to make a more systematic research on the capital structure of listed companies in this specific context of the pharmaceutical industry.In this paper, firstly, it uses the latest data of the financial statements of Pharmaceutical listed companies in China to study the characteristics of financing and capital structure. Secondly, it uses modern business theory and the capital structure theory to analyze the influencing factors of capital structure of pharmaceutical listed companies . Thirdly, it uses factor analysis and linear regression analysis to know how the various factors affecting China's pharmaceutical capital structure of listed companies. The results indicate that equity contraction, solvency, enterprise size, profitability, growth, and dividend payment policies influenced capital structure significantly, The extent reduced orderly; and that operating capacity, fixed assets investment, product unique, non-debt tax shields, the proportion of shares held by the controlling shareholder and state-owned shares have little effect on the capital structure. Finally, based on empirical analysis of the results of this study, it gives some recommendations targeted to optimize our capital structure of the pharmaceutical listed company with a view to providing the regulatory reference for the company's management, the majority of investors and the government.