Research On Characteristics And Influencing Factors Of Capital Structure Of GEM Listed Companies In China

Since the theory of capital structure was put forward, It has been the subject of discussion in corporate finance. Scholars draw different conclusion by different point of view and by using kinds of method. so, today there is no unified theory. And this is why the capital structure is still a hot spot of academic research, known as "the mystery of capital structure".In our country, although the study of capital structure is relatively later, the scholars draw lessons from foreign mature theory and research method on the basis of the research of capital structure. But, many studies are about the mainboard. The GEM market in China was established in 2009, there is little essay about its capital structure and affecting factors. Compared with the main board market, The GEM presents different characteristics. It has higher profitability, smaller size and more rapid growth than the main board these factors have important influence on the formation of corporate capital structure So, the study of the influencing factors about capital structure is suitable for the main board and not suitable for the GEM, It is necessary to study the characteristics and influencing factors of capital structure of listed company for the GEM.This article was based on the different characteristics of the listed company between the mainboard market and the GEM. By the study,on the one hand is to find out the characteristics of capital structure about the listed companies on the GEM.,on the other hand is to find out its influencing factors then, Through the analysis of these influencing factors, which is beneficial to suggest improvement to form more reasonable capital structure of companies listed on the GEM.In the process of research, the methods of inductive, statistical analysis and empirical regression was adopted.First, the inductive methods was used to comb the articles about the theory of capital structure,lay the theoretical basis for the study of this article. Then, the statistical analysis was used to state the characteristics of the companies listed on the GEM Later, this paper selected some variables that may affect the capital structure of companies listed on the GEM and used the empirical regression to analysis the factors that influencing its capital structure. On the premise of analyzing the influencing factors in combination with the current actual situation to give some suggestion for improving the capital structure. The full text contents included following chapters:The first chapter is the introduction section, mainly elaborated the research background, the significance and methods of the research, research contents and possible innovation and shortage, etc.The second chapter is the theory review and literature review. First,simply introduced the theory of capital structure. Then, combed the classical and the latest essays about the influencing factors about capital structure at home and abroad On this basis, the paper summarized the current research status and the influencing factors that be proved by previous articles.The third chapter is the analysis of the GEM listed company and the characteristics of its capital structure, through the analysis found that the capital structure of the GEM listed companies in our country has a lower debt levels than the mainboard market, and its current liabilities ratio is too high, equity is relatively concentrated, the executives own more shares than the listed company on mainboard market.The forth chapter is to choose variables and data to analysis the influencing factors of the GEM listed companies, In this part, empirical methods will be used for analysis to determine the conclusions, and then, give some theoretical explanation of the empirical results. By empirical found that the profitability,the liquidity of assets and the CEO shareholding rate has negative influence on capital structure, the size, operation ability, the out share and Non-debt tax shields has positive influence on capital structure; the concentration of share holds, the growth and the asset composition has no influence on capital structure.The fifth chapter is some advice about promoting the capital structure more suitable for the GEM listed company combined with the results of empirical. The suggestions were included that the companies itself need consider its characteristics when they do some decision about capital structure, establish the dynamic adjustment mechanism about capital structure,strengthen the use of liabilities, especially long-term liabilities, perfect the corporate governance and protect the interests of small and medium-sized investors and so on..The expected contribution as following:first, Using the actual data of the GEM listed companies to describe its characteristics of capital structure in detail; Second, in order to prevent the accidental factors of capital structure if only using one year data, this article selects three year data from 2012 to 2014;Third, the previous study about the influencing factors of capital structure of the GEM listed companies do not consider industry differences, this article tested the industry differences of capital structure.Due to the limitation of knowledge level, the shortage of this article mainly included two aspects. First, the macroeconomic factors were not considered; Then, the sample data and the length of time is not enough, the conclusion remains to be verified.