An Empirical Study Of China's Chemical Industry Listed Companies' Capital Structure

The research of the capital structure theory has always been a hot issue inacademic circles. The study of factors affecting capital structure constitutes animportant part of the research. The capital structure reflects the different interests inenterprise requirements of their own rights and obligations, which directly affect theenterprise value, the cost of capital and financing decision problems. The Study theeffect of these factors contributes to the optimization of corporate governancestructure, the cost of financing.This paper first reviews the basic theory of the capital structure, the status andinfluence factors of chemical industry of capital structure of the listed Corporation inChina are analyzed, the listed Corporation of China’s chemical industry in recentyears, the rate of assets and liabilities and long-term debt ratio and the whole industrylisted Corporation related indicators were compared, find out the trend andcharacteristics of listed Corporation capital structure China chemical industry. Afterthe analysis of the impact of macroeconomic factors and micro factors on the capitalstructure of the listed Corporation in China’s chemical industry was summarized,including macroeconomic factors such as economic growth rate, inflation rate, capitalmarket, institutional environment and policy guidance; microscopic factors includefirm size, profitability, growth, asset liquidity, ownership structure, operation ability,collateral value.In the empirical part, this paper selects853data of2007-2011in Shanghai andShenzhen Stock A shares Market of all chemical industry listed Corporation as thestudy sample, using the factor analysis method to reduce the dimensions of12affected the micro capital structure,5main factors were selected, and then use the5main factors in the multivariate linear regression analysis empirical, the results showthat: growth, short-term debt paying ability, collateral value, the scale of the enterprisehave a significant positive correlation with assets and liabilities rate; and the enterprise profit ability, operation ability, equity structure have a significant negativecorrelation with assets and liabilities rate. Through the further explanation of theinfluence factors, I find out the existence of different levels of listed Corporationcapital structure of China’s chemical industry, put forward correspondingcountermeasures, to improve the capital structure of the listed Corporation in China’schemical industry has a certain practical significance.