The Comparative Study On Capital Structure Of Companies With Different Financing Demand Under Background Of Industrial Transformation And Upgrading

The industrial structure optimization has been gradually promoted for decades.However,past economic growth pattern encountered difficulties and China is more eager to accomplish the industrial transformation and upgrading after the financial crisis of year 2008.Therefore,this paper creatively studies influencing factor difference among companies with various financing needs from micro perspective,providing the suggestions and enlightenment in the financing field for different parties including the government,financial institutes and enterprises,in order to help our country accomplishing the industrial transformation and upgrading more efficiently.In this paper,companies are classified into three categories: companies expanding main business in traditional industries,companies expanding main business in emerging industries and companies transforming from traditional industries to emerging industries.Combined with industrial structure theory,capital structure theory,corporate characteristics of financing behavior and institutional environment under our current background,the author theoretically analyzes the difference of the capital structure of various companies influenced by several factors,including three kinds of indicators: corporate characteristics,corporate governance and financial market price level.Panel data is established separately and bidirectional dynamic model is accepted in order to carry out empirical comparative analysis.The result shows that huge difference exists in factors influencing capital structure of companies with various financing needs,not only in the impact degree,but in the impact direction as well.Companies expanding main business in traditional industries will consider more about corporate characteristics including firm size when deciding capital structure.Companies expanding main business in emerging industries will consider more about corporate governance and financial market price level including ownership concentration and stock price.Many influencing factors are not significant in companies transforming from traditional industries to emerging industries because of their complicated corporate features.Relevant suggestions are given with respect to formulating guidance policy,measuring reasonable level of firms' capital structure,establishing our financing system and improving corporate governance environment at the end of the article.