New Analysis On Influencing Factor Of Capital Structure Of The Listed Companies In China

Since the mid-eighties of last century and the pioneering study of Brander and Lewis, the study on the factor of product market competition effecting on capital structure has become an important research question of the determinants of capital structure. So far, however, the current research about the product market competition on capital structure influencing research results is few, most scholars put the focus on studying enterprise capital structure on the influence of product market competition. Especially according to actual situation of our enterprise in our country, the research about the product market competition on the capital structure selection is fewer.In view of existing situation, in this paper, we select the angle of different product market competition form to study the influence of the capital structure. This research angle in similar study is relatively original, meanwhile,this paper takes the Chinese 955 listed companies 2005-2009 financial data as object and considers the Chinese capital market development status and the actual product market. This will allow research conclusion more in line with the actual situation of our enterprise; Besides, this paper tests empirically the relationship between the product competition market and capital structure as well as the degree and style of the different competition form on capital structure by adopting the effective measurement model to test the financial data of selected company. The study shows that there is a negative relation between product market competition strength and enterprise's debt level.