Stock Liquidity And The Financing Structure Of Chinese Listed Companies

The company’s capital structure decision-making will affect the value of the company, so it’s a very important dicision. Many foreign scholars have found that there is a close relationship between the company’s capital structure and liquidity of the stock. And they do hard work in this area. This paper holds the point that the company’s capital structure and stock liquidity is associated. And they prove that there is significant relatioship between capital structure and stock liquidity in the listed companies through empirical research.First, this paper analyse the background and purpose of this study from the current situation of the stock market. Second, the paper summarizes the main point of the research of this area in and out of our country. Third, the paper summarizes the influencing factors of the stock liquidity and the capital structure, and describes the interaction relationship between the two by constructing a theoretical model. And this lays the foundation for building our empirical regression model.The empirical model uses the company data of the Shenzhen Stock Exchange from2007to2010. After we get all the descriptive statistics of all the variables we use turnover, weak liquidity and relative effective spread to measure the stock liquidity. Through associating cubic meters by the group, this paper examines·the significant correlation between capital structure and stock liquidity. After then, we exthamin the effectiveness of the model. Ultimately, we can assert that there is significant endogenous relationship between capital structure and stock liquidity:the increasing mobility of the stock will lead to the decline in the ratio of the dept.