Research On The Influence Of Asset Specifeity On Capital Structure Of Medical Listed Company

The choice of enterprise capital structure is to solve the problem of fund process ofenterprise development, is one of the most important financial activity in enterprise. Thetransaction cost theory consider that it is better regard debt and equity as twogovernance structure than two kinds of financing methods, and the choice ofgovernance structure mainly depends on the degree of the asset specificity.The medicalindustry is a strategic leading industry in national economics, is a state force ofadjusting the industrial structure, improve the national competitiveness, plays animportant strategic position in the national economic development. Compared withother industries, the medical industry has a distinctive feature of the asset specificity.Therefore, in the framework of transaction cost theory, this thesis chooses medicallisted company as the research object, studies the relationship between the assetspecificity and capital structure, and provide some targeted suggestions to improve theuse efficiency of capital of medical listed company, promote industry development.Firstly，this thesis analyse the influence mechanism of asset specificity on capitalstructure in the framework of transaction cost theory, puts forward the researchhypothesis of a negative correlation between asset specificity and capital structure. Then,This thesis chooses medical listed companies’ financial data during2006and2010inshanghai and shenzhen stock exchanges as a study sample. measure the asset specificityof medicine listed company by long-term assets ratio and sales fee ratio. analyze therelationship between medical enterprise asset specificity and capital structure choice bythe least square method, fixed effects model and random effects model. The empiricalresults show that medical listed company asset specificity had significant negativecorrelation with capital structure. It is said that the higher the degree of the assetspecificity, the lower the debt ratio of enterprise’s capital structure.This thesis argues that the medical enterprise should pay more attention to the assetspecificity the influence of the capital structure in the financial decision-making, designcapital structure reasonably, adapt whit the asset specificity of enterprise, reducingtransaction cost of enterprises, improve its market value.