Macroeconomic Factors And Capital Structure Correlation Analysis

This essay begins with the radical changes in macro-economy recently, and makes a research in how to change the capital structure which can help enterprises develop steadily and exist as long as possible. By reviewing the related references and research and also considering the present condition of domestic capital structure ,we can analyze that the macroeconomic variable such as interest rate of loan , growth rate of GDP , rate of inflation , the supply of money and income tax of enterprise, will affect the difference of capital structure .Moreover, different countries and different period of economic development will also cause the difference of national average capital structure . Secondly, applying the econometrics software SPSS and EViews, we choose the domestic average debt ratio for the period of 1996-2006 to be the dependent variable, choose the macroeconomic factors we have mentioned to be the independent variable, the output result indicts that the growth rate of GDP is positively related to the average debt ratio. We choose the debt ratio of 78 listed corporations for the period of 2003-2008 to be the dependent variable, choose the macroeconomic factors we have mentioned to be the independent variable, the multiple regression model output result indicts that the growth rate of GDP is positively related to the average debt ratio, and the interest rate of loan is negatively related. The output result indicts that the macroeconomic factors will affect the enterprise capital structure. The enterprises should know the change of the macro economy and comprehend the policy government made, even could foresee the tendency of domestic economy. In this way, it is easier for the enterprises to make a suitable choice on capital structure, and adjust to the economic environment to assure a permanent development, to reach the aim eventually. On the other hand, our government should help to develop the capital market, make a better rule and policy to supply more capital to all the enterprises, and guide them to build a perfect capital structure.