The Research On Influencing Factors Of Capital Structure Of Textile And Garment Industry In China

Since the nineteenth century, textile and garment industries have been the mainstayand arteries of the world economy, playing an important role in its development. In thepresently critical transforming stage of the economic strategy, textile and garmentindustries’ stability, their rapid efficient development could enhance national economicstrength, and be a huge promotion of the economic development. Therefore, textile&garment industries are also important macroeconomic objects for our government toregulate, aiming to optimize the industrial structure and promoting industrial innovation.Among all the companies, the listed as the main force and the leaders of the wholeindustry are playing an decisive role in the challenge with competing other developingcountries, optimizing and upgrading industrial structure, transforming strategy. Indealing with industrial upgrade and strategic transformation, it is important ways toimprove corporate governmental structure, and to optimize capital structure of the listedcompanies of textile and garment industries.Therefore, based on the theory of modern capital structure and methods, Pearsoncorrelation analysis, multiple regression analysis method,taking domestic listedcompany of Chinese textile clothing company as the research object, this article startsfrom capital structure of the listed companies and after fully sorted and reviewed thecapital structure research results at home and abroad, this work aims to optimize thecapital structure of our textile&garment industrial listed companies optimizing thecapital structure of them, which could meanwhile promote the value of the listedcompany,and all these would ultimately provide reference for the textile&garmentindustry to maintain a sustainable way of development.The purpose of this study is to study the financial factors which can influence thelisted companies of textile&garment industry, the selection of the independent variableincludes the company size, assets mortgage value, the growth opportunities, profitability,dividend policy and the non-debt tax shields etc; current debt ratio and total liabilitiesrespectively are taken as the dependent variables. This research takes the listed companies of textile&garment industry as objects, anda total of75companies their sample data are available. The paper summed up theinfluential factors of the related literature on capital structure, used multiple regressionmethod to analyze the data from2006to2010.The results showed: for the current liabilities ratio the multiple regression modelagreed with the data from2010, meanwhile current debt ratio and growth opportunitiespresented related, and assets value and profit ability were in negative correlation. For thetotal liabilities, multiple regression model of the year in2010showed the best, of whichtotal liabilities with the company size, growth opportunity are related, but profitabilityand dividend policy is in negative correlation. So whether take current liabilities or totalliabilities as the dependent variable in the regression model, the influence factors of thestatistical significantly showed more frequently and dramatically in2010year’s analysis.Based on the empirical results, the article provided a tactic from the company anddomestic macro environment levels to optimize the structure of listed company for thetextile garment industry.and considering that the optimization of the capital structureneeds the development of Chinese bond market.