The Application Of Quantile Regression Approach On The Study Of The Determinants Of Chinese Listed Companies' Capital Structure

The study of capital structure shows that capital structure is a centralized reflection of shareholder's rights and obligations which determines the managing structure of corporations, and has further influences on value of them. Then there were many experts who were concentrating on analysis of factors affecting capital structure of corporations in order to provide some suggestions on optimizing the capital structure. The main job of this study which comprises three parts is to analyzing the affecting factors of listed companies of china.In the first part, the development of modern theories of financial structure is introduced. After the definition of financial structure, it reviews and evaluates the development of modern financial structure theories, including Tradeoff Theory, Agent Theory and Asymmetric Information Theory. These theories are not only the foundation of this study, but also show the significance of analysis of factors influencing capital structure.The second part is analysis of the factors affecting financial structure of Listed companies, which is the most important one in this thesis. The relative factors are usually considered as country norm, industry norm and corporation norm which are all mentioned in this thesis. However, the main point of this study is the country norm. Using panel data of listed companies, this paper analyzes it with a quantile regression approach, then draws a conclusion: the share structure and the capability of emerging interior resources effect the capital structure changeably with the different quantiles respectively. That is, for those conditions with low asset-liability ratio, the sign is positive, on the contrary, the sign is negative. The paper also reveals that the growth, the size, and the financial distress cost of company is positively correlated with the capital structure, while the profitability and the non-debt tax shield is negatively correlated with the capital structure. On the basis of the analysis, the author then gives the further explanations on the influence mechanism combining characters of china's listed companies.At the last part, the author gives some suggestions on optimizing the capital structure of listed companies, which concerns two parts. One is for the single company concentrating on how to choose the proper capital structure and financing instruments considering the characters of its own. The other is for our government, emphasizing on how to establish a good institution environment for corporation's financing.