Empirical Research Between Sustainable Development And Capital Structure Of The Listed Companies In China

Nowadays, as the market competition becomes more and more fierce，ourcompanies will face increasingly competitive environment in the process ofgrowing. Pursuing growth is the instinct of listed companies that can add valueonly if it is growing, how to make the listed companies develop better hasbecome a problem concerned to manager. According to research, the numberof bankruptcy due to over-speed are almost the same as the bankruptcies dueto over-slowness, so we can se that growing too fast or too slow is not a goodthing to company development. The optimal pace of development is to adapt tothe financial resources of company. So that we use the strategic opinion ofsustainable development to guide the company financing is greatly significant.With the development of China’s capital market, the expansion of thecompany’s scale has gradually expanded and the decision-making lever hassignificantly raised, companies do not only concern about the scale offinancing, but also pay attention to the ways of financing and the capitalstructure to enhance the company’s market value. However, the capitalstructure is unreasonable and financial leverage is not effective used, so itimpacted on the value of the company. Therefore, the study of capital structureis important for the raising of the decision-making lever and improving thecapital structure of China’s listed companies.The research methodology is combination of theoretical and empiricalmethods. From the view of sustainable development, the listed companies willbe divided into groups of low growth group and high-growth group, then, studyon optimal adjustment of company’s capital structure which under differentgroups, to empirically research on between Sustainable Development andCapital Structure of the listed Companies in China. This paper is divided intofive chapters. ChapterⅠ is the introduction. ChapterⅡ is the literature.ChapterⅢ expound sustainable growth theory and capital structure theory, promulgates take the enterprise value maximization as the link financialsustainable growth and the capital structure reciprocity. Chapter Ⅳ is empiricalresearch, and it is this paper’s emphasis. The listed companies will be dividedinto groups of low growth group and high-growth group according to SGR, then,study how to optimize the capital structure to maintain the growth ofenterprises. ChapterⅤ is the research conclusions and policy suggestions,and points out the research limitations.According to the findings, we propose the following recommendations:Develop Strict system of Equity financing; Improve lending market andencourage enterprises to embrace Debt Financing; Nurture manager market;Deepen the understanding of the concept of sustainable growth to increase therational decision-making of managers.