Research On Capital Structure Of Automobile Manufacturing Industry Listed Corporation In China

Since 1950s, capital structure has been one of three major themes of financial management. Capital structure is popular attention so much for the following reasons. It involves each enterprise's link, such as capital raising, operation and profit assignment, etc. It is the important index that reflects enterprises' capital strength. It measures the capacity of enterprises paying debt. At the same time it's the starting and the end to examine enterprises' financial risk and raising funds' decision. In a word, capital structure is the gene of modern enterprises. Rational capital structure helps enterprises to improve the market value, to arrange the ownership and control power rationally, to solve the problems of enterprises governance structure and to reduce the bankrupt risk.Since the naissance of MM theory, many scholars commenced on the study, and made the theory approach the real condition .Research based on listed company focused in two aspects: one is researching on the relation between capital structure and corporate value; the other is researching on the capital structure affecting factors. The research from foreign scholars showed that the affecting capital structure factors include the profitable ability, size, growing ability, tax level, non-debt-tax-shield, uniqueness.The security market of China developed later, and the system was special. So the capital structure of listed corporations in China have different characters with foreign companies, the affecting factors are more complicated.This thesis started with the western capital structure theory, and detailed commented on it. It established theory basis for automobile manufacturing industry in China using the experience of newest research accomplishments of the western capital structure. The writer used a large of statistic data to analyze and describe present situation of automobile manufacturing industry in China from total condition, liability and financing condition aspects. And this thesis drawn into the research accomplishments of capital structure theory to study the affecting factors of capital structure of automobile manufacturing industry listed corporations .It used the multiple regression method to make capital structure decision model and tried to make sure the optimization direction of business capital structure for the rational financing arrangement and capital structure optimization.To analyze the capital structure from the automobile manufacturing industry angle is the main innovation in this thesis, because other people rarely do from this angle. We selected correspondingly some specific indices after considering the automobile manufacturing industrial characteristics, and then used the multiple regression method. The result showed the factors that affect the automobile manufacturing industrial capital structure. I hope the thesis can help the capital structure optimization of automobile manufacturing industry listed companies, and it can provide some guidance for a more thorough research.