Industry Comparative Study On The Influence Of Interest Rate Adjustment To The Capital Structure Of Listed Companies

As the core issue of enterprise development, Capital structure directly affects theenterprise’s performance and prospects. In China, listed companies capital structureisn’t reasonable, such as high debt rate and significantly disparity between differentindustries, which isn’t conducive to the healthy development of enterprises andadjustment and optimization of industries structure. In order to optimize capitalstructure, China has repeatedly adjustment of monetary policy. But the result is notvery desirable. Large amounts of capital inflows into real estate, which lead to severeasymmetric effect of industry. Therefore, how to optimize business capital structure,find out the cause of asymmetric effects and formulate concrete measures to promotethe coordinated development of industry is very meaningful.Firstly, I will introduce capital flow theory, the internal mechanism that interestrate affect capital structure and industry effect of monetary policy from theperspective of capital flow. Secondly, I will analyze industry characteristics of theenterprise capital structure. Next, using the listed company financial data and fixedeffects model, I will Empirical analysis the difference between various industriesreaction coefficients and divided into two categories according to the empirical results,which explain the industry from the perspective of capital flow theory.There are two main conclusions:(1) the capital structure of strong reactionindustries and weight loan rate is significantly negative. While the weak reactionindustry only has weak negative relations with weight loan rate.(2) The return onassets and bank depended of strong reaction industries is higher than weak reactionindustries. But the management risk of strong reaction is lower than the weak reactionindustries.The innovation of this article is analyzing the relation between interest rate andcapital structure from the bank and industry and empirically the relationship betweeninterest rate and industry capital structure.