Study On Determinants Of Financial Structure Of Chinese Listed Agribusinesses

Financing structure has been an important financial contenting in the theoretical studyabroad. The best financing structure will help the company’s operators make the reasonablefinancial decisions in order to improve operational efficiency in the company. As the basicindustries of the national economy, agricultural companies gain more and more attentionsfrom population. However, due to the capital market’ lagging development of China, it isstill not so perfect, and there occurred some questions in agricultural companies, like a badoperation situation and the irrational financing structure and so on. Therefore this papermade the agricultural companies for the study, made micro-factors andmacro-circumstance, probably influencing financial structure. The micro-factor includesnone-debt tax shield, profitability, growth, Operational capacity and asset tangibility, sizeand business risk. Then in metrology sample, measurements of variables and methods aredefined in order to examine hypothesis above. This paper has three conclusions, first, forthe micro-factors, none-debt tax shield and operational capacity are nothing to do withasset-liability ratio, profitability, asset tangibility, and growth have negatively correlatedwith asset-liability ratio, business risk, size management equity interest and profitabilityhave positive correlated with asset-liability ratio, concentration of ownership is negative tothe asset-liability ratio. Second, for the macro-factor, economic growth have positivecorrelated with asset-liability, the size of the stock market and stock market activitynegatively correlated with the asset-liability ratio. In order to improve the financingstructure of the agricultural companies in our country, we have some suggestions. First,have a appropriate attitude on the tax benefit of the agricultural companies. Second,rational use of financing equity interest to optimize the structure of benefits to theenterprise. Third, listed companies in China’s bankruptcy system. For the last, ImproveChina’s securities market.