Research On The Determinants Of Capital Structure About The Listed Company

Since 1958, Modigliani and Miller put forward the famous theorem that the market value of corporate has nothing to do with capital structure under the perfect market conditions, the scholars have done extensive research on"capital structure puzzle"issues. The theory of capital structure have already become mature in western countries, moreover, foreign scholars have spent lots of time to study the determinants of capital structure , but it's deficient for developing countries, particularly like China which is in a period of institutional transformation. This article mainly studies determinants of capital structure for Chinese listed companies in Shanghai, which is of great theoretical value and practical significance to optimize the capital structure.This article firstly reviewed the developing of capital structure, and summarized some relevant determinants of capital structure. In order to study the determinants of Chinese listed companies'capital structure, it's necessary to conclude the general characteristics of capital structure as macroeconomic factors and firms'characteristic factors. At last, this article uses regression analysis method to examine the effect of capital structure on industry factors and ownerships.The empirical research in this paper, we select all Chinese listed companies in Shanghai as the test samples, making a multivariate analysis of four main industry categories and two different ownerships. The conclusion of empirical research of this paper indicates: Capital structure differs greatly among industries, which state clearly that the industry characteristics are one of the most important factors affecting capital structure; Capital structure differs obviously among state-owned enterprises and non-state-owned enterprises shown that ownership is the significant factors influencing capital structure; When explanatory variables exist delayed namely used the date in the lagging period date, the conclusion of empirical research are significant differences. Finally, the author proposes the policy recommendations to opimizing the capital structure of listed companies on the basis of the empirical results.