Research On The Capital Structure And The Financing Effect Of Chinese IT Listed Companies

An ample source of fund and a rational capital structure are important for the lasting development of an industry. IT industry is characterized by high investment, high risk and high returns. The fund needed for exploitation of information technology and its industrialization is always in a large sum. This is the character, which differentiates IT companies from other listed companies and has a huge effect on the capital structure.In light of this, this paper attempts to do a research on the problems concerning the capital structure and the financing effect of our listed IT enterprises based on the research method of a combination of qualitative analysis and quantitative analysis as well as that of theoretical analysis and empirical analysis. The paper will start from a study of the theory of the capital structure; make a theoretical analysis on both the macro and micro factors which have effect on the selection of the capital structure of our listed IT enterprises. Then, the method of statistical analysis such as factor analysis and multiple regression analysis will be adopted to make a further analysis of the important factors. Finally, an empirical investigation of the economic returns brought by the selection of capital structure of the listed IT enterprises will be made. The research conclusions are as follows:(1)The theoretical analysis indicates that the lagged financing market and the strict specialty of the assets limited the financing selecting channel of the listed IT enterprises. IT enterprises are not willing to use long-term debt because of the preferential policy of tax for the high-tech enterprises. The emphasis laid on flexibility stimulates IT enterprises to adopt a low liabilities/assets ratio and a relatively high current debt proportion.(2)The empirical analysis reveals that the profitability, mortgage value of assets, growing ability as well as the share negotiability of the enterprises have a decisive influence on the capital structure of IT enterprises.(3)The arrangement of the financing structure of the listed IT enterprises lacks in efficiency. The stock financing has no salient effect on the managing performance. Although the proportion of the mercantile credit financing is rising, the effect on the managing performance of the enterprises is negative, while the positive fiscal financing and internal financing are at a low proportion. It also shows that the capital use efficiency of IT enterprises is worrying, and the raising financial leverage gives people negative signals about the enterprise value and the managing performance.(4) The capital structure of our IT listed enterprises is rational from the point of steady. However, the capital use efficiency and the arrangement of the financing structure are worrying. When making financing decisions, managers take whether capital can be obtained under the circumstance of low risk rather than the more rational arrangement of financing structure. This is out of two reasons. On the one hand, it's caused by the lack of restriction and balance mechanism. On the other hand, it's caused by the imperfection of the domestic financing market and the narrowness of the enterprises'circulating channel.