Study About Equity Structure Impact On Capital Structure In GEM Listed Companies

Growth Enterprise Market (GEM) has developed rapidly and has become animportant force to promote the development of Chinese capital market since its set upin2009. With the GEM market’s development， scholars pay more attention to itscapital structure. This article analyze the impact from the controlling shareholder tocapital structure by three angles of ownership concentration， the nature of equityand liquidity. By using a combination of literature study， qualitative and quantitativeanalysis method to explore different indicators to measure impact in equity structureand capital structure， make relevant recommendations for optimizing the capitalstructure of the GEM companies， which can not only enrich the GEM market theory，but also provided the basis for the healthy development of the capital market.First of all， we reviewed domestic and foreign literature about equity structureand capital structure， and presented the opportunity of this study and the researchframework.Second， we definite the concept of the Growth Enterprise Market (GEM)， theequity structure and the capital structure. We elaborated the characteristics of theequity structure of companies listed on GEM and the capital structure. We analysis thecurrent situation and development trend of the capital structure of companies listed onGEM and pointed out the problem about the capital structure of companies listed onGEM.Third， We analysis alternative variable of the equity structure and capitalstructure by using descriptive statistics. Based on research hypotheses， we analyzedsubstitution variables of the equity structure and control variables by using correlationanalysis. We removed some variables， because they exist multicollinearity. We usedthe empirical analysis for the factors equity structure， which affect the capitalstructure by using multiple linear regression model. The study results show that it apositive correlation on largest shareholder， the proportion of the outstanding shares，firm size and operational capabilities with responsible for the assets ratio. It is a negative correlation on the proportion of the top ten shareholders， the proportion ofmanagerial ownership， the proportion of state-owned shares and the proportion ofcorporate shares with responsible for the assets ratio.Finally， we pointed out that the problem of equity structure in GEM listedcompanies and capital structure based on the use of empirical analysis， andproposed the corresponding measures and suggestions.