Capital Structure Cyclical Fluctuations Of Business Research And Product Market Competition

The company’s financial and industrial economics of product competition and alot of research on relationship between the capital structure for many years. However,in most of these studies did not consider the macroeconomic relationship betweencapital structure and the market competition of the enterprise. In fact, themacroeconomic belongs to a kind of can affect industry and industry internalstructure of the external variables, to in some way or a period to the enterprise capitalstructure decision-making decision effect. When economic fluctuations in the demandfor industrial impact especially when negative impact, the competition within theindustry will have change, will by changing the competition strategy within thebusiness signal that maintenance or grab market forces, accordingly change thefinancing decision, adjust the structure of capital, lead to the asset-liability ratiochange. Therefore, on the relationship between capital structure and the productcompetition process, the macroeconomic volatility into account for the economicfluctuation is greatly, macro adjustment frequency of China is very necessary. In viewof the above reasons, this article is set in2008of the international financial crisis, tothe capital structure of listed companies in China construction machinery industrywith a detailed analysis of the relationship between the product competition, and findthis article on the basis of the research train of thought and content framework.Secondly, this paper theoretically analyzes the economic cyclical fluctuation, theenterprise’s capital structure and product market competition. Think economiccyclical fluctuation will make enterprise according to the concentration degree ofindustry competition and industry situation, to choose the competition strategy, theenterprise competition strategy will change. Competitive strategy, enterprise selecteda corresponding different financing strategies, lead to different asset-liability ratio.But if the selection of capital structure is not appropriate, will lead to the enterprisecapital chain exercise, competitive strategy fails, not only the loss of market share, also Mired in financial crisis. So the enterprise in the process of expansion, it isnecessary to moderate debt, maintain a reasonable capital structure.Then use empirical analysis to examined in the construction machinerymanufacturing industry, the relationships between the three came to the conclusionthat enterprise’s capital structure is affected by the product market competition andthe economic cycle, based on the analysis of enterprise capital and product marketcompetition, must consider the economic cyclical fluctuations, so that enterprises canmake reasonable capital structure decision according to the product marketcompetition, make yourself a better competitive advantage.Finally, the analysis of the implementation of the specific enterprise, analyzesthe zoomlion in the cyclical fluctuations of financial expansion phenomenon,economic fluctuations in front of the product market competition strategy and productmarket competition strategy, through the comparison and analysis, come to theconclusion that the demand for industrial economic cyclical fluctuations have anegative impact, vanda has taken a radical competition strategy, and the expansionaryfinancial policy, formed a high level of asset-liability ratio.