The Research Of Optimizing The Capital Structure Of The Listed Companies On GEM

Oversee GEM had gone through a tortuous course, but they play an irreplaceable rolein promoting high-tech industries and growth-oriented small and medium-sized enterprise.China GEM has attracted285initial public offerings of companies until January31,2012.These companies display the “six new six high” characteristics of new economy, newagriculture, new materials, new energy, new services, new business models and hightechnology, high growth, high appreciation, high risk, high price/earnings ratio, highdifference.Over the past two years, dozens of studies about GEM and listed companies showedthat western capital structure theory cannot fully explain and guide China’s GEMcompanies because of different market environment, the financial system and corporationinstitutions. Therefore, it has practical meaning in analyzing and leading the optimizationof Chinese GEM companies’ capital structure with the existing western theories.On the basis of the static tradeoff theory and dynamic capital structure theory, theauthor firstly analyzes listed companies’ nature and characteristics from aspects ofindustrial distribution, enterprise’s lifecycle, enterprise’s size and growth ability. In thischapter, the general situation and unique case of listed companies’ capital structure are alsoanalyzed. In the end, the author adopts the empirical approach to analyze the macro-andmicro-factors which influence the capital structure of listed companies of GEM. Themacro factors include inflation rate, the real rate of interest, the actual regulations andpolicies of the state system, competition situation of product market and runningconditions of capital market, etc. The micro factors include profit ability, the non-debt taxshields, the size, tangible assets ratio and the growth etc. In response to problems of listedcompanies’ capital structure, the author propose corresponding measures like puttingforward the standard policy laws and regulations, improving capital market system,strengthening the supervision board, reinforcing the internal financing, improving the debtstructure and increase risk awareness.