Study On The Correlation Between Capital Structure And Product Market Competition Of Listed Companies In China

Before 1980s intermediate stages, the researches about the enterprise capital structure decision-making and the product market competition decision-making were separately launched in the two domains of the corporate finance theory and the industrial organization theory. Hereafter, the pattern, which the corporate finance scholar and the industrial economics scholar were independent from each other, starts to break up. In our country, it has both the important theoretic and practical significance to understand and integrate the inter-relationship between corporate capital structure and marketing competition structure. It helps the company gain the competitive advantage, improve market share and ensure listed companies to develop healthily.The dissertation mainly carries on the study of correlation relations between the product market competition and the capital structure. We emphatically analyze the influence the factors such as how product market competition intensity affect the capital structure, as well as the analyzing of capital structure influences product market competition under the conditions of output competition and price competition. In the foundation of influence mechanism analysis, this paper selects 18 industries of our country's A-stock listed companies from 2002 to 2004 as the sample, though the multiple linear regression research from the industry stratification plane, we conclude that the capital structure and the product market competition intensity has the inverse correlation relations.