Research On The Influence Of Asset Specificity On Capital Structure Of Agricultural Listed Companies

Asset specificity is an important characteristic of the company’s assets. With the rapid development of market economy and technology, companies relying on general assets production large quantities of product homogeneity cannot obtain a unique competitive advantage. To improve the core competitiveness, companies continue to increase asset specificity investment. But specific asset redeployment liquidity and low, the impact of the assets mortgage guarantee ability, is not conducive to the company’s debt financing, affecting the company’s capital structure. The capital structure affects the company’s cost of capital, market signals, management institution, market value etc. Study on the factors and the impact of capital structure, is one of the important problems of accounting academics. But the existing research is usually on assets under the premise of general assets, and was not considered the impact of asset specificity on the capital structure. Due to the particularity of agricultural and agricultural production, asset specificity of agricultural listed companies is very significant. Therefore, this paper takes agricultural listed companies as the research object, meanwhile analyses the characteristics of agricultural listing company special assets and capital structure, and studies the effects of agricultural listing company asset specificity on capital structure.First, based on the existing at home and abroad about asset specificity research results, the paper defines the concept of asset specificity and the structure of capital. According to transaction cost theory, signaling theory and strategic management theory, this paper analyzes intrinsic mechanism of asset specificity influence on capital structure. Secondly, this paper uses long-term assets ratio, cost of sales ratio to measure the agricultural listed company’s asset specificity. The capital structure are divided into two levels, the total assets and liabilities rate, long-term debt rate, ratio of endogenous financing and financial debt ratio measuring the capital structure. By 2011 to 2013 agricultural listed company’s financial data, this paper describes the characteristics of agricultural listed asset specificity and capital structure. Again, the paper selects dependent variables, independent variables and control variables. This paper establishes the multiple regression model to empirical test of agricultural listed company asset specificity influence on the capital structure, with the 2011 to 2013 agricultural listed company’s financial data. Finally, according to the conclusions of this study, this paper puts forward reasonable suggestions, for capital structure optimization of agricultural listed companies.Statistical results indicate that agricultural listed companies of the degree of asset specificity is very strong, which shows rising trend, the big difference between industries; the capital structure of agriculture listed company is unreasonable, lower the total assets and liabilities rate, lower long-term debt ratio and lower the ratio of internal financing; financial institution is one of the major sources of debt financing. Special Assets of listed agricultural companies have a significant negative impact on the related debt financing, internal financing has a significant positive correlation effects have a significant positive impact on the financial liabilities related to financing. The empirical results show that agricultural listed company’s asset specificity has a significant negative impact on the debt financing, a significant positive influence on the internal financing, a significant positive impact on the finance debt financing.This paper puts forward the following suggestions: agricultural listed companies should consider the impact of asset specificity to choose the mode of financing; agricultural listed companies should improve the proportion of internal financing and improve the corporate bond market.