A Research To The Relationship Among Equity Structure,financing Structure And Product Market Compitition Power

Since James and Lewis (1986) using the strategic commitment theory initiated the relationship between the enterprise's debt financing decision-making and the produce market competition in 1980s. The relationship between financing structure and the produce market competition had attracted the domestic and foreign scholar's widespread attention. Domestic and foreign scholars when they researched the relationship between the financing structure and produce market competition, they revolved to the quantity ratio of debt to equity financing structure. However the financing structure should also include corporate governance, because different financing way represents different income flow assignment and the different domination arrangement, the different financing structure means the different property rights disposition. It is important to research the relationship between financing structure (financial leverage or ratio of debt to asset) and produce market competition in the company's finance condition's aspect. But, if inspecting the financing structure in the assignment of power aspect, then it is essential to research the company's Ownership structure. For instant, does it have different influence in produce market's competition strategy in the Ownership structure centralized company and dispersion company, and in state-owned company and in non-state-owned company? At the same time, any company, no matter is in the Ownership structure centralized company or dispersion company, in the state-owned company or non-state-owned company, it possibly has the current liabilities or long-term debt. Whether different deadline's debt has different influence to produce market competition?This paper combines the company's Ownership structure with the company's debt financing internal structure closely. Take the debt financing's strategy effect to the company's product market competition as the master line, by constructing ownership structure equation, the debt financing structure equation and the company's product market competitive power equation's simultaneous equations model to make empirical study. The findings indicated that the ownership structure, debt financing structure and the company's product market competitive power has the interaction. The debt has the strategy effect in the product market, company's financial situation is a material effect factor in a market competition, and if the company wants to appropriate using debt financing in the produce market strategy effect, it should choose the different deadline debt contract; The different concentration degree and property of ownership structure produce different influence to the company's market competitive power, so when the company makes the property rights structure arrangement, it should consider its influence to product market competition.