An Empirical Study On The Determinants Of Listed Companies’ Capital Structure From The Perspective Of Regional Difference

Capital structure is always a hot topic in the theory and practice area. Based on the background of our country being in the economic transition period, the structure of China’s listed enterprises has been influenced by the enterprises’internal factors and the external environment factors. There are differences in the level of economic development, the marketization process, the national policy, among the eastern, the central region and the western. Whether the difference is the same as the difference among the countries, taking on the selective difference of capital structure? May the regional factors influence the capital structure of China’s listed enterprises? In the different regions, are there differences in the determinants of the capital structure in the listed enterprises? By now, few researchers focus on this issue in our country, this paper bases on the institutional environment, analyses the factors affecting the capital structure of China’s listed enterprises from the angle of the regional differences, and the study is theoretical and practical.This paper systematically study the determinants of the capital structure of China’s listed enterprises, started with the regional differences in the selective factors of the capital structure. In the empirical study, this paper chooses2001-2010A shares listed enterprises as the sample, analyzed the influences of the regional differences on the capital structure from two aspects:on one hand, it adopted regional dummy variables, established a linear regression model, in order to study the effect of the regional differences on the capital structure of China’s listed enterprises; on the other hand, it classified the sample into three:the eastern, the central region, the western, in order to study whether the differences of the determinants of the capital structure has the regional characters. The conclusion showed, regional differences did influence the capital structure of China’s listed enterprises. The three index of enterprises’size, the collateral value of assets, the profitability has great influence on the capital structure of China’s listed enterprises, but the degree of the influence existed different in the different regions; the rest indexes of the income tax rate, equity structure, the macroeconomic situation and the marketization process has the different influence in the different regions on the capital structure of China’s listed enterprises.