Research On The Capital Structure Of Chain's Dairy Listed Companies

Capital structure problem has been a hot issue that is both theoretical problem and Empirical Study. Dairy industry is an important indicator of the level of development in modern agriculture, especially in animal husbandry. The development could lead feed, packaging, transportation and commercial development of a series of industry chain. Our dairy companies have increased investment on the construction of milk base and a large-scale financing were needs, because of Melamine incident affecting. The choice of capital structure is critical to dairy listed companies, because it affects the financing costs and the market value of the enterprise. Select 8 dairy listed companies as the study samples. 2004-2007 Annual Report for the data, analysis of characteristics of dairy capital structure of listed companies by descriptive statistics. The main countermeasures are as following: the level of total debt ratio is low; the internal structure of debt is unreasonable; the level of long-term liabilities is low, equity financing account dominance. Put an empirical research about affecting factors of the capital structure on the dairy industry listed companies. The study found that profitability of the business and non-debt tax shield factor affect the capital structure of dairy listed companies significantly, followed by the collateral value of assets and company growth.According to empirical results, separate from the internal environment and external market environment in the analysis of optimal countermeasures for dairy listed companies.