Analysis On Affecting Factors Of Capital Structure Of Listed Companies In Growth Enterprises Market

The Growth Enterprises Market appeared on the market on October30,2009finally. TheGrowth Enterprises Market promotes our formation of multi-level capital market structure, itprovides the high-tech and high growth companies with a development platform. Capitalstructure has become the core issues when the modern enterprises take the financial activities,and the reasonable capital structure can play an active role in maximizing the enterprises’ marketvalue. Therefore, to identify the affecting factors of capital structure, and researching on theaffecting factors of capital structure is great significant.This thesis reviewed the literature of theory of capital structure, based on the researchresults of the older, then selected companies listed on Growth Enterprises Market for my study. Ianalyzed the corporate finance status of the Growth Enterprises Market and found that therewere serious financing problems in China’s Small and Medium-sized Enterprises. And I alsopointed out that the most funds required by daily production activities of China’s GrowthEnterprises Market is current liabilities, and lack of long-term funds. I used the statistical tools ofSPSS17.0and EXCEL2003and had an empirical study on affecting factors of capital structureusing the factor analysis and regression analysis. We condensed the16financial indicators intofive factors using the factor analysis, named for the company’s operational situation, operationalsecurity, operational efficiency, operational strength and operational efficiency. The results showthat the company’s operational conditions, operational security and operational efficiency have anegative correlation with debt ratio, that is profitability, cash flow, solvency and operationalcapacity have a negative correlation with debt ratio; the company’s operational prospect andoperational strength have a positively correlation with debt ratio, that is the company’s size,growth, and pledged assets have a positively correlation with debt ratio. These factors whichimpact the company’s debt ratio affect the company’s capital structure ultimately.Then combining the results of empirical analysis,I made recommendations forimprovement for companies listed on Growth Enterprises Market and some policyrecommendations. Finally summarize and generalize the research results of this paper, andpropose the further research prospects.