An Empirical Research On The Industry Discrepancies Of Capital Structure Of China's Listed Company

The Industry Discrepancies of Capital Structure is not only an important aspect in influencing studying of the capital structure, but also is in close relationship with the core issue of the capital structure theory—the existence of an optimal capital structure. A systematical study of the discrepancies of the capital structure industry contributes to, in theory, further recognizing the factors of influencing the capital structure and characteristics of the industry, and can guide a relevant subject to make a strategic decision.While making the discrepancies of the capital structure industry a studying core, this paper tries to solve the problems that whether China's listed companies in the same industry are provided with similar assets debt ratio; to what degree the discrepancies of the capital structure of different companies can be explained by factors on an industrial layer; what differences influences from characteristic factors of different industries on different industries. In this paper, China's listed companies are classified according to the "Industry Classification Guidelines for a Listed Company" formulated by China Securities Regulatory Commission. On the basis of 6920 sample figures from the year 2000 to the year 2006, methods, like a descriptive analysis, One-Way ANOVA, LSD, a regression with an industry as a dummy variable, and regression with the industry characteristic factors as variables, are employed step by step to examine empirically effects of industry discrepancies on the capital structure of China's listed companies. Conclusions are obtained as follows: (1) prominent discrepancies exist in the capital structures of different industries of China's listed companies, and the discrepancies exist generally, not caused by an abnormal value of a single industry; (2) although prominent discrepancies exist in the capital structures of different industries of China's listed companies, explanatory power of industry factors to the capital structure is relatively low, less than 9%, quite different from the research in foreign countries; (3) the effecting factors of capital structure in different industries are different, and the same factor also has a different effecting degree to different industries, wherein the yielding ability is one of the most important effecting factors; finally, suggestions of how to optimize the capital structures of the listed companies in our country are proposed.To sum up, although discrepancies of capital structure in different industries can be partially explained by industrial factors, further studying need to be done in the future, of discrimination of financial information and elaboration of industry classification criterion in the field, thus to comprehend the problem of the discrepancies more accurately and to provide decision makers in a company and practices of a relevant subject with researching achievements which have guiding significance.