| Since the MM theory, many experts and scholars forward using the capital structure theory to study of various economic behavior of enterpriseBefore the 1980s, product market competitiveness belong to the category of industrial economics, and capital structure belong to the research contents in finance. The experts of the two area doesn't pay more attention to the relationship between the two, they always do their own research. On the one hand, and industry economics theory based on the relevant research is mostly enterprise's profit maximization hypothesis to competition strategy decision-making, ignore the capital structure of the market competitiveness of products may effect; On the other hand, the capital structure of the scholars argue that the product was the given the internal decision-making, is just a exogenous cash flows, and the capital structure of the decision base on the maximize shareholder value.With the rapid development of the society, the economic activities of the enterprise oriented comprehensiveness and innovation for directions. As the one of the corn competitiveness, product market competition received attention from the company managers, while capital structure, as the one of the important index of the financial situation, has almost influent the capability of the refinance and earning of the enterprise's. How about the relationship of the two, how they can influent the economic activities, we may link the product market competition which belongs to industry economics and the capital structure which was the part of the finance, to research together. Based on the listed companies in Shenzhen and Shanghai as the research objects, this paper research the relationship between the product market competition and the capital structure by empirical study, the study found that the product market competition and the capital structure has significant negative correlation. |
