The Influence Factors To Fapital Structure Of Listed Construction Companies

As one of the three pillars of the national economy,construction plays an important role in the development of national economy and the improvement of people's lives.In recent years,when the growing diversity of construction models in large-scale companies meets the horizontal and vertical integration of corporations and the business strategy of urban operators,higher requirements will work to support the capital and financing ability in the large construction companies.From the current status of the construction industry growth,the gross margin of the construction enterprises is small,while the risk they face cannot be overlooked.Data from this study showed the construction industry is a high-debt one,the average of which is more than 70%.In this context,the listed construction companies will be inevitably reduced to the higher financial risk.In general,our country construction enterprise's capital structure is unreasonable,debt capital accounts for a big share which increases the risk of insolvency,and in turn lead to more difficult financing,so the construction enterprise's capital structure present situation is not optimistic.Previous studies around the world showed that the impacts on the capital structure of construction enterprises have plenty of theoretical results,but disagreement and some limitations still exist on the research ideas and methods.So,this paper intends to analyze this question with qualitative and quantitative research methods.Based on the construction listed companies,by considering the factors that influence capital structure of listed construction companies,this paper will analyze how the capital structure of the listed construction companies will be influenced from both macro and micro perspective.What this paper will tell:Firstly,the paper will summarize the western capital structure theories.Secondly,this paper will clarify the classification standard of the construction industries in a simple manner,and analyze the status of capital mix on the basis that we have some knowledge about the development of the listed construction industries in China.Theoretically,the capital mix of the listed construction industries in China will be affected by the factors including the economy,inflation,enterprise scales,profitability,business ability,growth ability,solvency,effective tax rate,non-debt tax shield,collateral value,ownership concentration,business risk and financial risk.And subsequently,this paper will choose the Shanghai and Shenzhen A listed construction companies as sample data,and then will empirically prove how macro and micro factors will affiect the capital mix of China's listed construction industries with the methods of the factor analysis and multi-dimensional linear regression;and the results showed that unlike the micro economy factors,the macro ones would just slightly change such capital mix.In the end,some suggestions the follow-up studies are put forward in this field.Innovation in this paper mainly focus on the more comprehensive studies on the factors that influence the listed construction industries from the macro and micro manners with the methods of the factor analysis and multi-dimensional linear regression by integrating the data of the listed construction industries in 2011-2015.Meanwhile,this paper may not contain all theories about the influence factors of capital mix,and have some setbacks in the choices of variables and designation.So suggestions are the follow-up studies may start from the time order and study the influence factors of the listed construction industries in a dynamic manner.