| In 1958, Modigliani and Miller put forward the famous MM theory; MM theory indicates that the capital structure does not affect the firm value under the conditions without the transaction costs, tax and asymmetric information. MM theory is an idealized theory. Since then, on the basis of MM theory, many scholars investigated the effection of capital structures to the firm value by the gradually slackened assumptions of MM theory. The capital structure issue has been the focus of the discussion, since the MM theory was put forward. Because the company's capital structure is the core matter to make corporate finance decision, and it has always been the focus of discussion in the academical circles. In addition, it directly affects the choice and the ratio of different kind of the mode of financing, thus it further affects the extent of control on the company from shareholders, creditor and other stakeholders, but not the ratio between the capital and debt superficially. Although the western scholars have made a lot of theoretical explanations on the various factors affected on the company's capital structure, the test results are not entirely consistent with the theories because of the complexity of the actual situation and the particularity of macroeconomic. Therefore, it's particularly important to investigate the determinant factors of Chinese listed companies'capital structure research in the Chinese characteristics socialist market economic system. In my thesis, there were three theories I mainly mentioned which were trade-off theory, agency theory and pecking order theory, and all of them were developed on the basis of MM theory. In this article, I used the actual data of Chinese listed companies to analyze the influence of contributing factors on Chinese listed companies, meanwhile, I discussed the practical application of western capital structure theories in China environment, which all based on analysis of the modern enterprises'capital structure's evolution theories and combination of the MM theory, such as agency theory and pecking order theory and etc.Capital structure is composed by broad and narrow definition. The broad definition means the ratio relation between the firm's debt capital and equity capital, and the narrow definition of the capital structure refers to the relationship of all kinds of firm's long-term funding sources. In this paper, I used the capital structure's broad sense conception as the dependent variables. According to the latest research achievements of the influencing factor of company capital structure , I summarized the six representative influencing factors as the explanatory variables, which were firm size, profitability, business growth, asset security value, non-tax liability shield and equity structure. I used the total 79 listed companies'2006 annual financial data of real estate, agriculture, forestry, animal husbandry and fishery industry as the subject to make a research, and used the Eviews5.0 software as a tool, meanwhile I used stepwise multiple regressions as the method to examine the influencing degree of those six selected factors in the two industries listed firm capital structure.The whole dissertation was divided into five parts: Part one was introduction. The author introduced background, significance and incentives, break-through points and limitation of the research. Part two was capital structure's theoretical basis. I recommended the theoretic bases of the company's capital structure, mainly introduced the MM theory, including the original MM theory and the process of the theories set up on the gradually relaxed MM theory's assumption and other theories about capital structure which developed on the basis of the MM theory. In this part, I also discussed the latest domestic and international research achievements domestic and abroad. Part three was the analysis of capital structure's contributing factors. In this part I choosed 6 influencing factors as the explanatory variables which had been considered more important by all the domestic and international scholars. Meanwhile, the author choosed the rate of capital debt as the dependent variables. Part four was empirical analysis. Firstly, I united the listed companies'data of two industries and made the regression analysis. Then, I analyzed and expatiated the regression's results. After that, I made regression analysis using the listed companies'financial data of the real estate and agriculture, forestry, animal husbandry and fishery industry respectively, analyzing and explaining the results. The last part of the paper was conclusion. The content of this part was comparative analysis of the results of the three regression analysis in the fore part. In this part, I gave some suggestions on the company capital structure's choice, meanwhile, discussing some deficiency in the research process.In this paper, the author had done regression analysis by three times. The first regression analysis was that I united the listed companies'data of two industries as a whole. The results were that firm size and equity structure had a significant positive effect on the debt ratio; profitability and non-tax liability shield had a significant negative effect on the debt ratio, but business growth and asset security value had not statistically significant effect on the debt ratio. The second regression analysis was a separated analysis of the listed companies'data of real estate industry. Similarly, the author got that firm size and equity structure had a significant positive effect on the debt ratio; profitability and non-tax liability shield had a significant negative effect on the debt ratio. But the difference with the first regression analysis results was that asset security had a significant positive effect on the listed companies'debt ratio of real estate, and business and non-tax liability shield had not statistically significant effect on the debt radio. The third time separated analysis was on the listed companies listed companies'data of agriculture, forestry, animal husbandry and fishery industry. The results of the third regression analysis were the same with the first ones. With the results of these three regression analysis, I made the conclusion that: (1) firm size, profitability and equity structure had a significant effect on the firm's capital structure. It mean these three factors were very important influence on the firm's capital structure. I suggested that the firms should pay more attention on these three factors when managing the company, especially considering the firm size and profitability. The company should choose the suited financing method according to the company's own situation. (2) Business growth had not statistically significant effect on the firm's capital structure. It was probably due to the two kinds of listed companies that realty industry and fishery industry with better growth, which were more inclined to equity financing or internal financing, thus they would choose the lower debt ratio to make the firm remain further growth. Because of the debt financing's lower cost, the companies with worse growth usually used the debt financing to solve the fund demand and other problems. (3) The influencing degree of the same determinant in different industries was different. The influencing degree of asset security value and non-tax liability shield was different to the realty industry and fishery industry. For the asset security, it had a significant positive effect on the debt ratio of the listed companies in the real estate industry, but it had not statistically significant effect on the debt ratio of the listed companies in the other industry. The same as non-tax liability shield, it had a significant negative effect on the debt ratio of the listed companies in the agriculture, forestry, animal husbandry and fishery industry, but it had not statistically significant effect on the debt ratio of the listed companies in the other industry. |
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