Correlation Research Between Capital Structure And Income Tax Burden Of Listed Companies

The companies' ultimate goals are to pursuit the value maximization. In order to get maximum value, they will inevitably require a reasonable capital structure according to their own station. Capital structure is the most one of important issues in corporate finance, many scholars ever studied on the relationship between the capital structure and income tax. Theories and Empirical Study indicate that there are many factors affecting capital structure of the companies. And the corporate tax is a factor which affects capital structure. In theory, the higher the corporate tax is, the company intend to use more debt, But in empirical research, the conclusions of research on the connection of corporate tax and capital structure are quite ambiguous. This dissertation makes theories and empirical research on the connection of corporate tax and capital structure of the listed companies on the GEM in China, in order to seek the relevance between income tax and the company's capital structure in the context of current economic of our country.This article is selected the 2 years of 2008-2009 as the sample period of the listed companies on the GEM in China, carrying on statistical analysis to the financing structures of the listed companies on the GEM in China, the paper prove the list companies on the GEM of our country really have strong stock financing inclination. Asset-liability ratio is the dependent variable, the actual tax rate is the independent variable. Drawing on the past, many scholars have used control variables, for Empirical Data of China's listed companies to conduct regression analysis. The establishment of two models, one model only add all of the control variables, mode2 is the model by adding a tax on the basis of explanatory variables, as tested in the same period, the tax variables on capital structure. The results show that the tax on the capital structure variables showed positive correlation between the impacts is not significant. According to statistics and result that theory analyses, the paper puts forward some optimization of our country listed company's financing policy in terms finally.