An Empirical Study On Determinants Of China Mobile Capital Structure And The Financial Performance Analysis

The theory of capital structure is a controversial issue in the finance and corporate management. Optimizing capital and maximizing the company value is based on the determinants of capital structure. Focusing on the determinants of capital structure is the base of optimizing enterprise capital structure. The analysis of capital determinants plays a significant role of optimizing capital structure and telecom enterprise reform.This paper begins from China Mobile's capital structure. Research on its capital structure variance from 1997 and do empirical study on determinants of capital structure, so as to optimize the capital structure of China Mobile.First, this paper introduces concerned theories, especially the research on the capital structure determinants. Then, conclude the variance of China Mobile's capital structure after it became a list company. Third, do empirical research on determinants of China Mobile's capital structure. At last, analyze the financial leverage's influence to China Mobile's performance with The Du Pont System and Interlink Substitution System. The conclusion is that assets structure and non-debt tax shields play a prominent role of China Mobile's capital structure. Finally, propose on how to optimize the capital structure of China Mobile based on the conclusions of empirical research.