The Impact Of Product Market Competition On The Capital Structure

Since Modigliani and Miller's (1958) classic work, "the cost of capital, corporate finance and investment theory" of capital structure theory is the cornerstone of modern capital structure theory has opened a new chapter. After this, the research on corporate capital structure is springing up on the capital structure of the study continued to deepen, become the focus of the operation of one of the capital. In recent years, global market environment, our day of increasing the competitiveness of enterprises. At the same time the competitive environment within which the world has greatly increased the uncertainty, investors are increasingly value the long-term investment value and safety. But now, the domestic product market competition from the perspective of capital structure still in its infancy, few from the competition, competitive environment and competitive strategy in three aspects, to consider the impacts of capital structure.In this paper, using the modern capital structure theory, industrial economics theory, the integrated use of scientific mathematical statistics, econometrics, statistical analysis and other relevant theories and methods, standardized analysis and empirical analysis, in a more systematic review of the current a capital structure theory, product market competition theory, the analysis of the product competition, the impact of capital structure choice mechanism. Then the characteristics of iron and steel industry, the current competitive situation, capital structure, elaborated on China steel industry in the choice of capital structure should be considered when the competition factor. Empirical part, we start the main competition from the products on the total debt ratio, long-term asset-liability ratio and the current asset-liability ratio of three indicators for empirical analysis. The empirical results show that the financing behavior of listed companies in China's steel and enterprises are facing the choice of product market competition and the competitive environment there is a certain degree of mismatch, and the causes of the correlation analysis. Finally, based on the foregoing analysis, this paper optimize the capital structure of specific measures. Meanwhile, according to China's steel industry, financing environment, optimize the capital structure needs to make further substantial improvements in listed companies in China's steel industry, financing environment, but also to optimize the steel industry's competitive environment, efforts to improve industrial concentration.