A Research Of The Influencing Factors Of Capital Structure Of Listed Companies On GEM Board

Capital structure is the kinds of ways for enterprises to raise funds and the fin ancing quantity by each way. Reasonable set of capital structure is the important pa rt of capital. Since appearance of MM theory, capital structure theory and effect fac tors research appear constantly. The research of capital structure have made great ac hievements. But for the study of influencing factors of capital structure are controv ersial, there are many scholars in search of the influence factor of the capital struct ure.The GEM market can also be called as the second market, the development of China’s growth enterprise market twists and turns. In October2009, China formall y launched the GEM, This is a useful tool to solve the difficulty in financing prob lems for small and medium-sized enterprises and promote the development of high-t ech areas. With the launch of the GEM, how to optimize capital structure and redu ce capital costs, improve market value, this series of questions make the study of i nfluence factors of capital structure have the significant meaning.This paper reviews the western state’s research and achievement of capital stru cture influencing factor, reference the domestic and foreign relevant academic resear ch. Then make an empirical research on capital structure influencing factors based on the data of gem listing enterprise, get a conclusion that there are six important factors(including profitability and growth, operation ability, enterprise scale, solvency,blame debt tax shield) effect on capital structure of our country’s gem listing enter prise, meanwhile give advices on how to optimize the capital structure of gem com panies.There are six sections in this paper:The first part is the foreword. This chapter introduces the research’s backgroun d and research significance, and then described the methods and ideas, innovation p oints. At last review the research situation at home and abroad.The second part is review of the capital structure theory. This section expound s the definition of capital structure and introduces the development of capital struct ure theory in three stages: the traditional capital structure theory, the modern capital structure theory, and new capital structure theory.The third part is GEM introduction. This chapter will tell the development cou rse and operation gem based, listing conditions and the characteristics of foreign ge m boards, and at last introduces the experience which we can learn from the foreig n gem boards.The fourth chapter, this chapter analyses the macro factors (including influence economic development situation, inflation, and lending rates, capital market efficien cy, industry influencing) and micro factors (including profitability and growth, opera tion ability, enterprise scale, solvency, blame debt tax shield) which may influence t he capital structure. Provide theoretical foundation for the following empirical resear ch.The fifth part is empirical analysis. Select39public listed companies of the g em market which listed in2009as a sample for research. First to14indicators for principal component analysis, and then the extracted five factors in multiple regres sion analysis, find the significant factors. At last make a explore research of the op timal capital structure.The sixth part, conclusion, advice, shortage and prospected. Tell the conclusion of empirical research and give the advices on how to optimize capital structure of listed companies from the aspects of corporate governance and external financing e nvironment, and at last illustrates deficiency and give the prospect.