Research On The Capital Structure Of Chinese Listed Companies Of Different Debt Guarantee Abilities

Modern corporate finance theory suggests that the choice of capital structure is an important part of enterprise financial policy.It not only influences the cost of capital and the value of company, but also affects the running of the country’s macroeconomy. With the outbreak of the financial crisis in 2008, collateral has become the hot topic of research.For the cautious principle of risk prevention,financial institutions regard the collateral of company’s physical assets as an important factor of loans issue. In the face of increasingly strict rules for examination and approval of the credit, a large number of small and medium-sized companies are in financial difficulties and even bankruptcy.And most of these companies have a similar feature:the lack of collateral physical assets.In other words,the debt guarantee abilities of these companies are weak. The economic phenomena raise attention about the relationships of the debt guarantee ability, macroeconomy and capital structure. Do companies owning different debt guarantee abilities have different capital structure determinants?Do dynamic adjustments of these companies’capital structure exist differences? And in different macroeconomic circumstances do the above conclusions change?These issues are worthy of further study.This article selects the data of more than 2000 listed companies in 2006-2013.We study the capital structure of listed companies in our country from the static and dynamic angle. We divide all the sample data according to the debt guarantee ability into three groups--companies of weak debt guarantee ability companies of medium debt guarantee ability, and companies of strong debt guarantee ability. It studies the capital structure of enterprises of different debt guarantee abilities. First,the article studies the relationships between macroeconomy and capital structure of listed companies from the static angle, through the fixed effects model.And the results show that in the process of the capital structure decision,companies of weak debt guarantee ability pay more attention to capacity indicators-credit scale and equity financing spale.While companies of strong debt guarantee ability pay more attention to cost indicators--loan interest ratethe return rate of stock market. Then the paper studies the adjustments of the capital structure of listed companies from the dynamic angle,through differential GMM method. Research shows that in the face of same macroeconomic shocks, the adjusting speed of companies of strong debt guarantee ability is faster than companies of weak debt guarantee ability.Besides,the adjusting behaviors of the capital structure of these companies exit big differences.That is to say,due to the limitations of firm size, profitability, company’s reputation and so on,external financing needs of companies of weak debt guarantee ability are very strong.These companies less consider the cost of financing, and are more restricted by credit scale and other capacity indicators.On the contrary,due to the advantages of firm size, profitability, information transparency,corporate reputation and so on, companies of strong debt guarantee ability adjust external financing easier and more flexible.The external financing needs of the companies are relatively low, and they pay more attention to the loan interest rate,the return rate of stock market and other cost indicators. In view of the above theoretical and empirical analysis, this paper put forward some suggestions respectively from the perspective of micro companies and macro governments.