The Cunrrent Condition Of The Ratio Of Debt To Asset Of Chinese Companies

I researched the ratio of debt to asset from 2000 to 2015,based on Chinese listed companies except financial ones.I found the reasons of the ratio in respect of the structure of assets and profitability.What's more,I analyzed the current condition of the ratio and found that different industries and different controllers of the companies own different characteristics of the ratio.And companies in eastern China has the lower level of the ratio of debt to asset while the higher risk of paying back debt.The ratio of unlisted companies doesn't trend in rule because of many different reasons.Then I use some regression models to find the coefficients to affect the ratio focusing on the structure of assets and the profitability.The regression analysis shows the negative correlation of the ratio of debt-asset and cash,fixed assets and profitability and the positive correlation of inventory.If companies own less money because of less profit or because of lowproduction fixed assets,or because of more inventories difficult to sell out,companies will increase debt to maintain the current condition themselves.Finally,I analyzed five industries with high ratio of debt-asset and gives suggestions.I think iron companies' debt to asset is high because of low profitability,excess capacity,too much inventory,etc.The government should pay attention to iron industry and take action to deleverage the industry.