An Empirical Study On Capital Structure And Financing Decision Of The High-tech Listed Companies In China

With the development of information revolution becoming deeper and deeper, era of Knowledge Economy based on information technology is already on its way. It is known that Knowledge Economy has the high-tech industry as its primary industry, relies on science and technology as the foremost, and is motivated with innovation. Enterprises are the main body of innovation, high-tech enterprises’ innovation capability has become a constraining bottleneck of China’s economic and social development. Although technology is the primary factor in determining the development of high-tech enterprises, the availability of capital and financing costs will directly restricts the ability of the enterprise value creation for all emerging industries. After several years of reform, both innovation mechanisms and financial system have experienced profound changes in China; however, the combination of both problems has still not been completely resolved. So the research of capital structure and financing decisions focusing on high-tech industry is of great significance.In this thesis, using the research method of a combination of normative and empirical, firstly it give a review of domestic and foreign scholars’researches in the field of capital structure and financing decision, specially pay attention to researches of high-tech enterprises; secondly on the basis of description of elementary features of high-tech enterprises, it collects the data of listed high-tech companies in recent five years to make a descriptive statistical analysis on their current situation of capital structure and financing decision on purpose of summing up any problem; then this it makes empirical analysis on capital structure factors, financing decision’s motivation with use of correlation analysis and multiple linear regression method; finally it gives some reasonable proposals for the future of high-tech listed companies’recapitalization and financing decision-making.The conclusions show that China’s high-tech listed companies’assets-liability ratio is low, and there are problems of debt structure’s reversal, preference for equity financing; high-tech listed companies’capital structure has a negative correlation with the profitability, liquidity, risk management strategies and the level of innovation, and a positive correlation with the growth and firm size, and the correlation with turnover, asset composition and human capital is not significant; the assets growth rate and asset-liability ratio are the main drivers of financing decision making in high-tech listed companies, and profitability and quality’s impact is difficult to determine now.The first innovation in this thesis is the selection of high-tech enterprises as the research object and discusses the issues from a perspective of industrial characteristics, since similar researches are rare in our country. The introduction of corporation strategy, human capital and other industrial characteristics in the analysis of capital structure is another innovation as previous studies seldom concerned.There are some certain scarcities due to condition and the author. The sample selection in empirical studies need more meticulous authoritative, thus could avoid the deviate in conclusion from the actual situation. The inevitable excluding of some samples because of missing data has a further affect in the reliability of empirical results taking into account the number of samples already small. Capital structure and financing decision are the result of enterprises’own behavior and their surrounding environment, but this thesis emphasis on the firms’own behaviors, neglected the impact of macroeconomic factors and their regulatory role to some extent.