Research On The Relationship Between Capital Structure And Product Market Competition Of Non - Ferrous Metal Listed Companies Based On Futures Perspective

Capital structure and product market competition is the main object of study for years.It belongs to the field of finance, but market competition is the content of the industry economics, so there are no necessarily connection between them, but in recent years, more and more articles results show that they have a close relationship. This article studies the non-ferrous metal industry, based its particularity- there are six kinds of metal species are listed on the Shanghai futures exchange, so we can studied the relationship of capital structure and product market competition of non-ferrous metals listed company from the perspective of the futures market.In recent years the development of the non-ferrous metal industry entered the downturn, on the one hand, enterprise own development has a lot of problems, on the other hand, Although our country is the largest country in the non-ferrous metal production and consumption, but we have no voice in the international market and the right to set price. However, the futures market in the enterprise application is more and more important, futures hedging function is not only beneficial to the entity industry improving the efficiency of resource allocation, adjusting the industrial structure and the transformation of the mode of economic growth, but also can manage and avoid enterprise risk and adjust the enterprise profits. But almost no specific articles at home and abroad to study the futures market’s impact on capital structure and product market competition. So this article from the micro level, specific to the non-ferrous metal industry, under the background of metal futures market, analysis whether the non-ferrous metal enterprise which participated in futures trading can optimize capital structure and enhance product market competition.To solve these problems, this article from the industry characteristics, debt function and the influence of the futures market to summarizes the domestic and foreign literature review, then analysis and arrangement the theory research about the relationship of capital structure and product market competition under the background in the futures market, and then introduces the development present situation and the development trend, as well as the competitive landscape of the whole non-ferrous metal industry, and the futures market influence on the non-ferrous metal industry, based on this, advances the research hypothesis, select the non-ferrous metal industry listed companies in 2003-2013 data as sample, use the futures market as a dummy variable, the market competition as the explained variable to construct a basic model, and then increase the cross terms which multiplied by the above two factors in this model to have a regression analysis, finally came to the conclusions:(1)The product market competition strength of the listed companies in non-ferrous metal industry would reduce the asset-liability ratio level, because the enterprise will take relatively conservative financial policies to deal with a competitor’s attack.(2) under the action of the futures market, the asset-liability ratioto of non-ferrous metals enterprises which participated in futures trading will get a raise, as well as the intensity of the product market competition, even under the comprehensive action of the futures market and product market competition degree, in the factors of influence on capital structure, the futures market dominant, will eventually prove the asset-liability ratio. At last, through the analysis of a case about jiangxi copper which is a leading enterprises in the metal futures market to verify research conclusion of this paper.