Study On The Relationship Of Capital Structure And Product Market Strategy

The systematic research of capital structure only started in 1952. In 1952, The American economist David Durand raised the curtain for the theoretical research of capital .structure.Six years later, the classical work 《capital cost, company financing and investment theory 》 of Modigliani and Miller (1958 ) revealed the new page of the theoretical research of capital structure .Then, the articles about enterprise's capital structure emerged in an endless stream and the study is being deepened constantly. In one word, the structure question of the capital has already become one of the focus questions of enterprise's financing.This paper plans to divide the development of the capital structure theory into three stages on the basis of forefathers' existing research results; the three stages form the theory foundation of company's financing together. But no matter which stage, which school faces a difficult problem of "making variable explanation in theory consistency with reality ". Harris and Raviv (1991) have proposed in a survey article about capital structure theory: "asymmetrical research approach of information reach summit has become feeble and dying already."We think the reason is that the scholars only confined discussion of the structure importance of the capital to the normal form of "single enterprise ". Under this kind of situation, in the eighties of the 20th century, the financial scholar proposed "the industrial organization method of structure of the capital ". It is "the strategy of the products and product performance theory ". This is the most important topic "relation of capital structure and company product market strategy" in our paper.On the argumentation of this relation question, this text has summarized forefathers' achievements and views in this field at first, and according to their theory differences, we have set up a new model describing theory models of forefathers in unison. This model investigates the financing behavior decision question under themode of "multi-enterprises" of individual enterprise emphatically. Except for investigating the individual enterprise on products market competition for choice of capital structure, we also hope to investigate connection between different market competitions (namely different competition structure) and capital structure choice. In this part, we have selected the data of several representative listed companies both at home and abroad for use as the sample, investigating the impact on company's capital structure of the trade competition structure and their interaction especially.We still hope to find out some other important factors of influencing the capital structure of listed company of our country finally, in order to find the breach for optimization of the capital structure of listed company of our country and financial supervision.The description above is a content gist of this text. The full text is divided into five parts altogether as following: 1, the proposition of the question; 2 capital structure theories' comment; 3, capital structure and company's products market strategy; 4, a unified model studying in relations of capital structure and strategy product market of company; 5, trade competition structure and financing behavior.