The Empirical Research Of Capital Structure Under The Influence Of Industrial Technical Innovation Ability

The development of Western Modern Industrial Organization Theory shows that capital structure is a comprehensive selection based on many factors. As an exogenous variable, industrial technical innovation ability will definitely have an impact on the capital structure, and aslo will make further impact on company's business activities.This paper regards industrial technical innovation ability as one of the factors that affect the capital structure. First, this paper makes theory analyses of the influence approaches; second, the paper make a comprehensive measurement of the industrial technical innovation ability by using Factor Assay Methodology; then, this paper used the analysis method of Pearson related coefficient to discuss the differences of the inter-industry relationship; at last, the paper made a quantitative analysis by the GLS estimation based on 122 Chinese Listed Company of the data among 8 years (1997-2004).On basis of foregoing analysis, this paper comes to conclusions as follows:(1) The stronger the industrial technical innovation ability is, the more innovation resources the companies will have; the lower the innovation risk will be; and the more products will be created. So the industrial technical innovation ability makes an effect on the capital structure choice by three approaches: the innovation input, the innovation risk and the innovation output.(2) There are inter-industry differences between industrial technical innovation ability and capital structure: In non-mental mineral product industry,transportation equipment manufacturing industry and electric machine & equipment manufacturing industry, there exsists a negative correlation; In medicine manufacturing industry, there exsists a positive correlation; the negative relationship in other industries isn't obvious.(3) The stronger the industrial technical innovation ability is, the higher the capital structure level will be.