The Correlation Study Of Capital Structure And Asset Specificity Of The Listed Company

With the rapid development of technology,deepen reform of market economy.Increasingly number of enterprises are keep updating their strategic thinking,widen the strategic pattern.Making transfer the unique strategic resources to the specific core competitiveness,obtain the sustainable competitive edge and abundant value repay as the strategic goals during the enterprise's development.The investment of specific assets can not only assist forming this certain competitiveness,but maintain the sustainable competitive edge as well.Under the environment of market economy in our country,with the increasingly fierce competition,enterprises are spending more resources on the contribution and management of specific assets to reduce the product costs,promote product quality,thus strengthen the profitability.Based on present situation of listed company in manufacturing industry,the Documentary Research,and the background of relevant social system.The research about the correlativity between assets specificity and capital structure do have certain theoretical and realistic significance.This paper chose manufacturing enterprises in the shanghai and Shenzhen A stock market from 2010 to 2016 as example,aimed to discuss the relation between assets specificity and capital structure.This paper used the background of manufacturing industry and previous study as start point,chose Asset liability ratio,assets specificity and ROA as major indexes,thus establishing the logical relationship between three indexes.Review and analyze the correlation theory to put forward research hypothesis.Through the Statistical and regression analysis of sample data by using Stata v.13.0,ultimately come up with the empirical result of the relation of three indexes.Compare to previous study,the major academic contributions of this paper list as follows: at first,the economic environment and property right characteristic in our country is fairly unique compare to foreign countries.Particularities are exist in our economic operation.The study of the correlativity between assets specificity and capital structure in this paper provide not only the Theoretical basis for enterprise to promote core competence and conduct special assets investment,but also the theoretical guidance for enterprise to financing reasonably and optimize capital structure.Second,the previous research on the relationship between asset specificity and capital structure,mainly concentrated in the high-tech industry or which has high degree of asset specificity,but the manufacturing industry,that this paper discusses which degree of asset specificity isnot too conspicuous,but has both physical and intangible specific assets at the same time,which has the universal significance among all industries.This paper can be taken as a supplement In the empirical study of asset specificity and the capital structure.Former researches about factors which influences the capital structure is abundant,but a few of them are focusing on the specific assets.Most of former studies in our country on the correlation between the assets specificity and capital structure are concentrate upon high-tech industry,but less on the manufacturing industry with different nature of property right.This paper not only chose three indicators to measure the capital structure,but also use the profitability as a mediating variable to study the correlation between them,making the paper more persuasive and substantial in material,and help studying the process and mechanism of the correlation effects between the assets specificity and capital structure,thus can obtain deeper result based on regression analysis.