The Study On The Relationship Between Asset Specificity And Capital Structure Of IT Corporate In China

Capital structure of the corporate is a selective option by itself, it will have various implications on the corporate, and how to choose suitable capital structure, in order to increase the efficient capital, is a common problem for company owners and operators. Under the strategic background of"rejuvenating the country through science", China's IT industry has made rapid development. How to make use of the first productive force --science and technology to create more wealth for our country, which is an issue we should concern. Therefore, in this paper we take China's IT industry as research object to inspect the its relationship between asset specificity and capital structure .And we will provide some targeted recommendations to enhance efficiency in the use of capital and promote development of the IT industry.First, we review the theory of capital structure and find that Williamson's theory is founded on base of the transaction cost economics. He regarded equity and debt as two kinds of governance structure, at the same time he established the capital structure theory under the framework of the transaction cost economics. And he thought that there is relationship between asset specificity and capital structure. In this paper, we take China's IT industry as a special study object, first, we observe the status and the characteristics of this industry and analysis the capital structure of China's IT industry. Secondly, we analysis the relationship between asset specificity and capital structure, and take it as theoretical basis of our empirical study. At last, my paper use the data of China's IT industry to make an empirical study on the relationship between asset specificity and capital structure, the result of this study shows that there is a negative correlation between the asset specificity and capital structure in China IT industry .On this basis, we provide some suggestions for China's IT industry on how to choose reasonable capital structure to improve efficiency in the use of capital.There are two innovations in this paper , one is the study takes China's IT industry as object for the research .At the same time ,the paper studies the correlation between its asset specificity and capital structure .Then , we provide some commendations to promote the development of China's IT industry .The other is this paper has been selected three variables which are more effective on behalf of the company's assets specificity in many scholars'studies .The result of the study indicate that the variables system is relatively effective.Limited by my ability and information we owned, what's more, the research results about asset specificity and capital structure is not very mature, Therefore, the subject of this paper, there are still some aspects to make improvements, which also provides some topics for my further study in the future .