Research On The Effect Of Capital Structure On Product Market Competitiveness

Capital structure refers to the value composition and distribution ratio of various funds within the enterprise,and it is the result of the enterprise's financial financing portfolio.The academic community has rich research results on capital structure theory.With the expansion and deepening of research,Brander and Lewis first discovered that corporate capital structure is related to industrial competition.The debt situation of enterprises will affect the competitive strategy of enterprises,which will further affect pricing and company performance,at the same time,the industry's competition will also have an impact on corporate financing strategies,which in turn affects the company's debt situation.Based on this,scholars have deepened the joint research on capital structure and industrial competition,however,it is easy to find that when exploring the relationship between them,these researches just study the competition and capital structure at the industry level against the macro economic situation,while the theoretical achievements focusing on individual industries and considering the nature of enterprises are still to be enriched.With the further development of China's macro economy and industrial deepening,China's beer industry is developing optimistically.However,after more than 30 years of continuous development,Chinese beer industry has gradually slowed down its annual growth rate since 2014.In the midst of mergers and acquisitions,industrial upgrading and market transformation are common problems faced by every beer company.Based on the existing researches,the paper starts from the analysis of the characteristics of the beer industry and the market competitiveness of the products,selects the enterprise data of the manufacturing beer industry in the China Industrial Enterprise Database,and discusses the relationship of capital structure and competitiveness of the enterprise market.Firstly,the article uses the entropy method to calculate the market competitiveness index of the enterprise,and empowers the four indicators that reflect the competitiveness,i.e.,the market share,firm size,profitability and growth ability.The measure of force is used as the explanatory variable,and the asset-debt ratio is the explanatory variable.At the same time,the control variables such as asset growth rate,asset tangibility,product uniqueness,and non-debt tax shield and enterprise ownership are added to construct the model.The analysis concludes that there is a negative correlation between the asset-liability ratio and the product market competitiveness.The ownership of the enterprise will change the influence between them.The market competitiveness of the non-state-controlled enterprises is more sensitive to the change of the debt ratio.At the same time,it is concluded that the difference in the level of debt will also have a regulatory effect on the impact between them.Under the high debt level,the product market competitiveness will decrease more with the decline of the debt ratio,however,it will increase more with the increase of asset growth rate at the same time.The conclusions of this paper enrich the research on capital structure and product market competitiveness in the beer industry,which has practical significance in providing theoretical bases for beer enterprises to formulate development strategies.