Research On The Impact Of Credit Policy On Capital Structure Of The Chinese Listed Companies

Capital is the cornerstone of the operation long-term development. Capital structure represents the proportion of enterprise capital resources. Modern financial theory shows that the choice of capital structure is very important. Capital structure will be subject to various factors, and capital structure also will affect the business, financial, etc., especially financial risk. Therefore, the capital structure has been one of the company’s financial problems, the main contents finance. Deepening of capital structure theory, capital structure factors gradually broadened perspective, research findings indicate that the company’s assets-liability ratio is actually the result of both demand and supply of capital factors. In another words, the change in capital structure partly depends on capital supply. The main goal of this paper is to analyze the impact of macro-monetary credit policy for corporate capital structure. Changes in monetary and credit policy will directly affect the amount of capital of bank, thus affecting the ability of companies to obtain business capital, and prompting changes in corporate capital structure choice. This paper analyzes the overall situation of China’s listed companies in the equity and debt financing, capital structure, and the status quo of credit policy, and researches how credit policy impacts corporate capital structure. This paper selects 448 shares listed on the Shanghai and Shenzhen Stock Exchange, a sample of non-financial companies. The data includes relevant financial data between 2003-2013, as capital structure, income, assets, market capitalization and China credit policy during the period. It uses multiple linear regression models factors affecting the credit policy, by Stata statistical software. In this paper measures capital structure variable via gearing ratio, and sets short-term interest-bearing debt to assets ratio, long-term interest-bearing debt asset ratio and interest bearing debt asset ratio to meet the class variables. The growth rate of loans of financial institutions measures Credit policy variable. The sample was divided according to business nature asstate-owned enterprises and non-state-owned enterprises, according to the area of financial development divided into developed areas and non-developed areas business, according to industry characteristics into manufacturing and non-manufacturing industries enterprises. The empirical results show that:the credit policy would indeed have an impact on capital structure of listed companies. Credit policy and corporate assets and liabilities positive correlation, loose credit policy, corporate debt to capitalization ratio to rise. Meanwhile credit policy and capital structure of the relevant non-state enterprises is greater than the state-owned enterprises; credit policy for the capital structure of the impact of non-financial enterprises in developed areas is significantly greater than the financial well-developed areas; changes in the capital structure of the manufacturing enterprise credit policy changes brought about by higher non-manufacturing business enterprise; while empirical structure shows that long-term interest-bearing debt was positively correlated with the credit policy, short-term interest-bearing debt and credit policy of the correlation is negative, the direction of change to deal with the same kind of debt and interest bearing debt and credit policy. Therefore, based on empirical findings propose policy recommendations: to accelerate the company’s market-oriented reforms and corporate bonds, and promote the development of the corporate bond market, broadening the sources of long-term debt financing of listed companies.