Factors Influencing The Capital Structure Of Listed Companies In China

Researches on the capital structure have been an important issue in corporatefinance,as there is a profound internal association among the capital structure,corporate strategy,corporate governance,corporate growth and company value．Chinese capital market is different from developed countries,leading to the capitalstructure of Chinese enterprises different from developed countries．Since 2004,Chinese capital market has witnessed the Share Spit Reform which is a significantchange on the economic restructuring．Is the current capital structure of Chineseenterprises reasonable?Which factors significantly affect the capital structure ofChinese enterprises?How to optimize capital structure and improve the value ofenterprises?These issues related to the smooth progress of the reform of Chineseenterprises and to enhance the quality of listed companiesTaking account of the differences between China and Western countries,thisthesis focus on the factors which will affect the capital structure and testing theapplicability of the traditional theory by using financial data of listed companies inChina．First,the evolution and current status of the capital structure of Chinese listedcompanies are illustrated Then we can analyze the factors of Chinese listedcompany'S capital structure from the of micro and macro perspective．In particularregard to the split share structure reform,this thesis analyzes the impact mechanismsand pathways from which the reform can affect the capital structure We can find outthat the split share structure reform can affect the capital structure through corporategovemance,corporate performance and market conditions．After that,key indicatorsrepresenting the factors on the capital structure can be selected．The methods are asfollows：1)using 2004—2009 data on six cross—sections for the principal componentanalysis and multiple regression analysis,2)using data of six industries for FGLSpanel data model and fixed effects panel model．By using a large number ofcomparative analyses,we can find the changes on the factors through different yearsand different industries．Finally,based on the results of theoretical and empiricalresearch,the thesis can give some suggestions for the optimization of the capitalstructure of Chinese listed companies．Here are the prime results：1)The split share structure reform enables theenterprises to follow a market-oriented financing-decision—making method Factorssuch as ownership concentration,firm growth,income volatility may change their directions after the retbrm；2)There is a lag between the Equity structure reform andoptimization of capital structure,while as the share reform is completed,the companyownership structure and corporate governance structure has been rationalized,thus thecorporate capital structure will be gradually optimized；3)For real estate industry,petrochemical plastics industry,wholesale and retail trade industry,the split sharestructure reform has a certain effect on capital structure optimization,while formachinery industry．bio—pharmaceutical industry and technology industry,there is nosignificant effect；4)For the listed companies in China,western classical theory havebetter explanatory power at the firm level,but not better explanatory power at thesystem level．The static trade—off theory,agency cost theory and market timing theorycall well explain the financing behavior of listed companies in China,while thePecking Order theory can not explain China'S listed companies financing behavior．...