Empirical Analysis Of The Factors Influencing Capital Structure Of Private Listed Companies In China Before And After The Financial Crisis

With the U.S. sub-loan crisis spreading all over the world since August 2007, and its influences has had an effect on real economy. And General Motors fall in the bankruptcy storm duing to high debt problems under the circumstances, which gives an important inspiration to our listed companies. In the current environment, how to adjust the companies' capital structure to avoid the risks brought out of the changing environment has become modern economists' important topic. Western capital structure theories pay much attention to the private economy. Besides, private enterprises have become a pillar industry of China's national economy. But in fact, private enterprises meet with a lot of problems when they need financing. In this way, to do a research on private enterprises is of great significance both in theory and in practice.This paper firstly summarizes the research results both at home and abroad, and then reviews the relative classic theories. Meanwhile, we analyze the relationship between influencing factors and capital structure from a theoretical point of view. On the above analysis, the paper proposes a series of assumptions. Then, we study the relationship between the factors and capital structures through doing an empirical analysis with 108 listed companies manufacturing sectors'financial data. In order to avoid multicollinearity problem, we take the method of stepwise. Then we test the relationship separately. After finishing building an estimation model before financial crisis and after financial crisis separately, we compare the results and draw a conclusion that the factors don't change, but keep stable. Meanwhile, the stable factors are corporate size, profitability and the guaranteed value of capital. And their relationships with capital structure are consistent with the theoretical hypothesis.Finally, we give some suggestions to optimize the capital structure from both the macro and micro perspective. Especially under different economic situation, the private companies should pay attention to those stable determinants of capital structure, such as corporate size, profitability and so on.