The Listed Company's Industry Capital Structure Characteristics In China

Since the capital structure problems birth, it attracts many scholars to uncover its layers of veils.Many theories arise at the historic moment. such as The net income theory, the net operating revenue theory and The traditional theory which are the earliest theories。Then appeared modern capital structure theory which is mainly includes MM theory, the fixed MM and Static balance theory, and both based on MM theory. Along with other economic theory appeared, especially the asymmetric information theory, a lot of capital structure theory research from different perspective appeared then. Meanwhile, many scholars were not confined to capital market itself to research capital structure. They began to focus on the connection between capital structure and the product market, and put forward some corresponding theories, such as limited debt theory and "deep bag" theory.This paper uses the method of industry life cycle classification to research industry capital structure feature of listed companies in China on the basis of previous studies, and in consideration of Chinese relevant policy background and market environment. And through comparing similarities and differences of the capital structure between industries, life cycle type, discusses the reason to sum up some of the capital structure influencing indicated rule in our market environment of the industry product competition environment.According to the purpose of this paper, the section arranged as following: The first chapter is introductory theory which specifically describes the core ideas of this research, such as the background of the research, significance of the research and the ideas of the research.The second chapter is literature review which summarizes and comments predecessor's research contributions.The third chapter analysis the overall features of each industry of the listed companies in China. The main purpose of this chapter is to determine the analyzed object, sample and corresponding data of the paper. This chapter lays a solid foundation for the analysis of the fourth chapter and the fifth chapter.Chapter four is the division of industry life cycle. We can define the industrial competitive environment of every industry through dividing the phases and types of life cycle in this chapter.The fifth chapter is using descriptive statistics and non-parametric test and measurement methods to analyze the differences and similarities of the capital structure characteristics between industries in different life cycle.The sixth chapter is conclusions and Suggestions. This chapter summarizes the above analysis results and puts forward relevant policy Suggestions.Through the above analysis, this paper found that the industry prefer to take high leverage in the growth cycle of disadvantage and in the mature cycle of disadvantage. But the industry in maturation cycle of advantage and decline cycle prefer to take low leverage. And the industry in maturation cycle of disadvantage and decline cycle tend to adopt high liquid leverage level.