An Empirical Study Of The Capital Structure Of Listed Companies In China

Since the nineteen fifties, Mo Di Lian, Miller presents a groundbreaking MMtheorem since, many experts and scholars based on the theory of the capital structureof the company is discussed. But so far, the capital structure of the enterprise benefitthe explanation is not complete, practical observation and theoretical study still existbigger difference. In this paper, the capital structure issue of the company iscommitted to China’s macro economy background, there are two main purposes: first,through the empirical analysis to further prove, the western capital structure theory isnot suitable for the developing Chinese market; secondly, through the regressionmodel, summed up the impact of domestic enterprises capital structure mainly factors,thus proposed is helpful to optimize the capital structure of Chinese listed companiesthe opinions and suggestions.In this paper, through the literature review, to MM theorem, capital structure andcorporate value of the relationship between the capital structure of listed company,the decision cited. MM theorem, elaborated mainly comes from western literature aswell as a small part of Chinese literature different interpretation of this theorem.Capital structure and corporate value in the relationship between is through literatureat home and abroad comparison, summed up to embody the Chinese listed companyvalue factor. Finally, the existing research results, can be refined to influence thecapital structure of Chinese Listed Companies:main business revenue growth,returnon assets,fixed assets turnover,the proportion of state-owned shares,free cash flow,theaverage total assets of the logarithm,EBIT standard deviation of the actual tax rate.The third chapter of the empirical part is this article key point, home to145Chinese listed companies from2000-2009annual report data as the research object,analyses the value of enterprises and the relationship between capital structure, capitalstructure and the relationship between the8variables. First, from the overall view, the145listed companies in the10years of data were analyzed by descriptive analysis,through cross section data model and panel data model to test; second, from the industry sets out, in145listed company data to extract the most complete fiveindustry (manufacturing, electricity gas and water production and supply trade,transportation and warehousing industry, wholesale and retail trade industry, the realestate industry) for comparative analysis; third, considering the reliability of data, theinterception of the8regions within some of the listed company’s annual report data(Beijing City,Fujian province, Guangdong Province, Hubei Province, JiangsuProvince, Shandong Province, Shanghai City and Zhejiang Province,) analysis.Finally, in view of our country enterprise is in economic shunt, period of industrialstructural adjustment, put forward to raise business economic benefits, reducemanagement risk, improve the internal management mechanism, optimize its capitalstructure policy recommendations.