The Empirical Research On Capital Structure Of Listed Textile Companies

Corporations' capital structure is a question for discussion which is payed attention to long by corporation finance academe and corporation managers, is also one of the important contents on corporation finance study. In recent years, with the transformation of China's economic institution and the reform of investment and financing system, the research on the capital structure of companies is becoming more and more important. Now, many empirical researches to the industry as a significant factor alone explore its impact on the capital structure, but there are marked significant differences in the capital structure of many different industries, the study on the capital structure of a particular industry is very little. Chinese textile industry has gained relatively strong competitive advantage, what's more, textile industry which is an ascendant industry of our country, a main industry that can earn by exporting, has an effect on the development of Chinese national economy. Therefore, this paper studies the capital structure of the public textile companies.First, this paper reviews the basic theories and empirical researches, providing theoretical foundation for the capital structure. Second, through the use of statistical data, it describes the current status of capital structure of the public textile companies. Based on it, this paper selects the macroscopic and microscopic factors that have an impact on the capital structure of the public textile companies. After a brief theoretical analysis, it uses factor analytic method to investigate the microscopic factors of the capital structure of the public textile companies, then it uses least square method to analyze the influencing factors.The empirical researches showed that the capital structure of he public textile companies is decided by firm size, liquidity, tangibility and non-debt taxes shields. The debt to asset ratio changes positively with firm size and tangibility, and negatively with liquidity and non-debt taxes shields. Profitability, growth, volatility and macroscopic factors are not statistically significant, and I think there is not a regular relationship among capital structure. On the basis of the empirical researches, this paper puts forward several advices for optimizating the capital structure of the public textile companies.