Capital Structure Influencing Factors Of China's Listed Companies Research

By the U.S. sub-loan crisis, duing to high debt problems, General Motors may fall in the bankruptcy storm. Which also gives an important inspiration to other groups: in the current environment, re-examining capital structure and also its influencing factors is an important topic , because of the internal relations with corporate governance, corporate growth, corporate strategy and corporate values. How to choose the companys'capital structure has become modern economists'"The Mystery of Capital Structure." Since 1970s, the academia try to find the factors affecting the capital structure by empirical research from a wide range of factors, many scholars have found that the capital structure is closely related with the industry.On the actual situation in China, real estate has become a pillar industry of China's national economy.As a capital-intensive industry, real estate has the issues including high asset-liability ratio, starting projects blindly, single financing method. Therefore, this article draw on research related to domestic and foreign scholars'findings. From 48 listed companys'1999-2007 financial datas, using generalized least squares method to do model estimation and empirical analysis on the determinants of capital structure. Thus, doing those to test various factors on the listed company's capital structure.In this paper, the main conclusion of the study contains those as follows. First, insolvent institutions is not significantly related with capital structure. Profitability, company size and growth have a positive impact on capital structure. While, concentration of ownership, management capacity was a negative correlation with it. Real estate listed companies should strive to improve the capital structure, broaden the financing channels and reduce the proportion of liabilities, to effectively resolve to improve the solvency of financial risk, and should establish a more rigorous system of risk prevention.