China Bio-pharmaceutical Companies Capital Structure

Arrangement of the capital structure is a core problem within the enterprise finance decision. It has been proved that the capital structure of different profession has the significant difference by numerous researches about capitals structure. However, Currently there is few research concerning the formation and influence factors of the capital structure of one certain profession. Contrasted with other professions, the high-speed developing biotechnology & medicine profession of China has significant profession characteristics. In order to expel the interference of many professions admixture, this paper researches the capital structure of biotechnology & medicine profession thoroughly.Based on the research of characteristics of biotechnology & medicine profession's capital demand, the erecting the dynamic adjustment model of biotechnology & medicine profession's capital structure according to the panel dates, and the characteristics of this profession, this paper empirically researched the theory about the best capital structure influence factors and the adjustment speed and rationality of capital structure. The results indicate that it is necessary and reasonable to empirically research the capital structure of different professions, and that dynamic adjustment model is more reasonable than static model and multiple-linear-regression model. Concerned with exterior environment and internal strategy, this paper analyzed how to optimize capital structure of biotechnology & medicine profession of China.