Empirical Research On The Capital Structure And The Determinants For The Listed High-tech Companies

Capital structure theory is the classic theory in respect of modern financial management, and is the proven and research on the correlation mechanism between the value of the company and capital structure. On the one hand, capital structure theory link up a series of financial management theories such as asset pricing theory, the cost of capital theory, motivation theory and contractual theory, information theory which is for the comprehensive application of the theory to find the best fit, creating broad scope of the study and multiple perspectives. On the other hand, capital structure theory is based on these theories which are making any direction research find a rational basis and make perfect condition for the development of capital structure theory. Besides, the links of the capital structure theory and the capital market obtain empirical data to support or oppose it, which make perfect condition for the development of the theory and empirical research.This article is the application of capital structure of decision theory in the listed high-tech companies. Firstly, the definition of the capital structure is in-depth discussions and analysis. As the word of capital structure is from the areas of Western companies finance, domestic and foreign scholars have obviously different opinion, as a result of flexibility of its content and extension, some scholars used the narrow definition, which is long-term debt to total capital ratio, some scholars have broad capital structure, that is, long-term liabilities, current liabilities and the total debt to capital ratio. In order to in-depth analysis, It uses a broad capital structure.Then, capital structure theory is reviewed. Capital structure theory includes the traditional capital structure theory, modern capital structure, and new capital structure theory. Traditional one includes net income, net operating income and traditional theory. Modern capital structure theory includes MM theory, and the balance theory. New capital structure theory includes new information economics and game theory component, including the pecking order theory, agency theory.In this paper, on the basis of filing listed high-tech company's capital structure and elements data, the second part of the collection firstly makes descriptive statistics for broad capital structure, profitability and ownership structure data , drawing a lot of valuable conclusions. Listed high-tech company's capital structure has maintained a relatively stable trend, but lower than the overall average of the listed companies. Current liabilities account for a large proportion of long-term liabilities. Listed high-tech company's profitability is more volatile. Net rate of return on asset reverses to capital structure, that is the larger the proportion of debt, the lower the net rate of return on capital. In addition, different sectors appeared more different on the capital structure.The third part is empirical analysis. As the number of explained variables is 26, in order to make the analysis of variable factors that affect the capital structure and the interrelationship between them more clearly, therefore, principal factor analysis is used. As the descriptive statistics drawn that listed high-tech company's long-term debt levels stayed at 5% since the 2001-2005 five-year period, no floating, it's unable to reach a obvious correlation between the long-term liabilities and factors. Finally, profit, the size of enterprises, asset liquidity, the ability to repay current liabilities, non-liquid stock structure, stock initial financing capacity and debt-to-asset ratio was significantly related to the capita structure, in including the former six ,the internal financing capacity, intangible assets, fixed assets and current liabilities were significant factors to the current liability .After all, the shortfall of this article is that the principal factor analysis method is too rough, although it reveals the relationship between the factors affecting the capital structure and capital structure to some extent, an accurate analysis is needed. This paper is to choose more comprehensive variable factors, not only in terms of broad capital structure, including current liabilities, long-term liabilities, but also screening factors of a more comprehensive analysis, and a total of 26 selected capital structure factors were elected. The result clearly shows that the relationship between variables of the capital structure and factors. In addition, the paper makes deep analysis in the capital structure, profitability and ownership structure, reaching several characteristics.Because the research in this area is already rich, the writer think that, future capital structure study can transfer, to find impact on capital structure decisive factor between each other to the factors affecting the capital structure, making this field walk to more in-depth study.