Font Size: a A A

Research On The Influence Of Interest Rates And Capital Cost To The Capital Structure Of Listed Companies

Posted on:2013-12-23Degree:MasterType:Thesis
Country:ChinaCandidate:F PengFull Text:PDF
GTID:2249330395984584Subject:Accounting
Abstract/Summary:PDF Full Text Request
since the end of2010, the central bank has five adjustments of The benchmark deposit and lending rates, making the benchmark deposit rate float from2.25%in October2010up to3.5%with a rise of56%and the benchmark lending rate float from5.31%up to6.56%with a rise of24%.At the same time, The central bank has repeatedly raised the bank reserve requirement ratio. The impact of the central bank’s current round of monetary policy will undoubtedly be many sided, playing a positive role to curb the inflation and the management of market liquidity. In this economic environment, whether can the enterprises improve the business operation status and financial status through the adjustment of capital structure has become the concerns of the majority enterprises operators. So, it has practical significance to study the relations between the fluctuation of interest rate and the enterprises’ capital structure, look for the optimal capital structure, make the enterprises can seize the opportunity brought by the upward interest rate tightening financial policy,seek the enterprises’high-speed and healthy development and promote the nation economy’s high-speed and healthy development.Optimal capital structure can strike the better balance between the enterprises’ benefit on financial leverage, financial risk, capital cost and enterprise value. And one of the capital coat constrains plays a critical role when the managers of the enterprises decide the financing ways. Hence, on the base of studying the influence made by the macroeconomic environment factors on the capital structure of listed companies, this paper choosing the capital cost as a influential factor make a further study from the impact of the enterprises’ self perspective to capital structure. And this paper attempt to test the relations between enterprises’ capital cost and structure through the empirical evidence of Listed Companies, providing a theoretical basis for enterprises to seek the optimal capital structure to reduce the cost of capital.On the basis of theory analysis of the cost of capital and interest rates’ affect on the capital structure of listed companies,through establishing the economic model this paper makes theory analysis of the relations between interest rate and capital structure and relations between capital cost and structure. This paper makes empirical tests through1996to2010Shanghai and Shenzhen120listed companies’ current debt ratio and three months LIBOR rate data, as well as the capital cost and capital structure respective data, and try to analyze the long-term relations and interactions between interest rate and capital structure as well as capital cost and structure. So, it can provide a theoretical basis for listed enterprises to make financing decision and according to the empirical results put forward countermeasures to optimum the listed enterprises’ capital structure.
Keywords/Search Tags:listed enterprise, interest rate, capital cost, capital structure
PDF Full Text Request
Related items