The Impact Of Institutional Factors On The Capital Structure Of Listed Companies In China

Capital structure problem is always the central problem of financial management field. From 1950s when the cornerstone of capital structure theory MM was been laid out, after decades of development, the research of capital structure in theory and academy has been quite mature and perfect. However, the mature capital structure theory in China has not been in good applications, the empirical studies of capital structure by Chinese scholars have also proved that Chinese enterprise and western enterprise have big difference in choosing capital structure.China is an emerging marketing country and current in the economic transition period, thus make our enterprise facing the different external financing environment and mature western economic system. There are many domestic scholars have made deep researches in terms of Chinese enterprise capital structure from the view of macroeconomics factors and internal characteristic, but these studies did not explain the differences between domestic enterprises and western enterprises. From the angle of institutional factors, this article is going to find out the relationship between the capital structure problem and the special system factors in our country, thus to provide a new point of research in capital structure problem. This article is based on the background of special institutional factors in the economic transition period, through empirical analysis method, exploring how institutional factors affect the choice of capital structure of listed company, the article comprehensively considering the characteristic of institutional factors and company characteristics, the affection of business factors to the choice of capital structure, which could make the empirical results have stronger conviction and reliability.This article first has carried on the summary of capital structure research, according to the theory development way of capital structure, with the detail introduction of capital structure theory, simultaneously carried on various conclusion of different point of capital structure theory, which provided the rationale for the following research. Secondly, this article uses panel data and statistical software, analysis the degree of marketed, government intervention, the development level of financial market, and the consummation of legal environment then finally reach the conclusion. The result is the relationship between the degrees of marketed, government intervention, the development level of financial market and the capital structure is positive and significantly related, the relationship between the consummation of legal environment and the capital structure is negative and remarkable. The results verified the related hypotheses. Finally, based on the empirical results, and from the aspects of institutional factors and company management, this article suggested to optimized the capital structure in our listed company, and also give the suggestion of the financing behavior of listed company.