A Research On The Choice And Determinants Of Capital Structure Of Family Controlled Firms Based On The Life-cycle Perspective

In modern socity,family controlled firm has become one of the most popular and important operating patterns for enterprise.From both theoretic and practical perspective,the financing and captial structure problem is very improtant to family controlled firms,and a variety of people have paid much attention to this importance.In the differernt phases of corporate life cycle,profitability and external financing needs are difference,which affect the formation of capital structure.Using theories and methods from different fields and combining theoretical research and empirical research,this paper explores the choice and influencing factors of capital structure of Chinese family controlled firms,based on the life cycle perspective.The paper first reviews the theory of family business,corporate life cycle theory and capital structure theory. Second,this paper divided 59 listde companies into growth phase,maturity phases and decline phases with rhe method of growth rate of industrial economics.Then,compare to the status of the captial structure in the three stages of business life cycle.Using non-parametric test methods to test whether the capital structure have a significant difference at different stages of the life cycle.Based on the front research,in order to further explore the characteristics of captial structure at the different stages of the business cycle. Asset-liability ratio was the dependent variable;The life cycle was the establishment of model;The companies'growth ability,size and the collateral value of assets, short-term liquidity as the explanatory variables;Establish multiple regression model to regress various factors.The model has some statistical significance by testing.By empirical analysis this paper can obtain:captial structure in the growth phase,maturity phase,decline phase of listed family controlled firms of our country differs remarkably. Asset-liablitity ration in growth phase was highest,asset-liablitity ration in maturity phase was lowest.Family controlled firms are similar with other firms,they are both influenced by firm size,profiability,short-term liquidity,life cycle, collateral value of assets,growth ability etc.However,various factors impact on the captial structure in different stages has its own characteristics.And the derterminants in these three stages are also different.Therefore, optimization of the family controlled firm,should address the characteristics of the family controlled firm,take corresponding measures to improve captial structure.These can provide the theory basis and the practice instruction for the financing decision-making in different stages,and make the development of family controlled firm more effective and better.