Research On Capital Structure Decision And Product Market Competition

The relationship between capital structure and product market competition involves two fields that were unrelated in the past. Literatures focusing on the relationship between them arose in the 1980s. But the theories and the experiences were based on the foreign market economy. Whether they can be implied to the Chinese economy is unknown.This text regards evolution of the strategic capital structural theory as the clue, and the background, forming process, main theory thought of this theory have been explained. The decision of capital structure of the Chinese A-share listed company of manufacturing industry is studied. The full text is divided into five chapter altogether.Foreword: I introduced research motive, research meaning, research approach herein, etc.Chapter one: I made the international comparative study of capital structure, and gave a brief comment on the theory of capital structure.Chapter two: A brief review of the theories of capital structure when considering firms' product market competition strategy, including limited liability effect, investment effect.Chapter three: In this chapter, the meaning of several important variables had been analyzed. I analyzed how capital structure policy influenced the competence of product market competition.Chapter four: Positive research. Based on the data of Chinese A-share listed company of manufacturing industry in 2005, I examined the relationship between capital structure decision and product market competition.Chapter five: In this chapter, I gave policy recommendations. Based on the result of the positive research, I had put forward the policy recommendations in optimizing the capital structure of listed company in China.