The Research On The Capital Structure Optimization Of China’s Military Listed Companies

The research on capital structure has been the most critical issues of corporate finance. The arrangements of capital structure will have a great influence on corporate finance and corporate values. The military enterprises have born the dual task of economic development and national security. Therefore, we must research the development of military enterprises, because it is very important. According to the experience of modern economic development, the IDF industry is a typical capital-intensive industry. The development of military enterprise needs strong financial support. However, due to the limited government spending and internal accumulation, the capital market financing has been an important way for the military enterprise to obtain funds. With the establishment of our multi-level capital market and the deepening of the military enterprises reform, it’s of great theoretical and practical significance for us to strengthen the study of military capital structure optimization problem.In this paper, we study the capital structure of the military listed companies. First of all, we introduce the characteristics of the capital structure of china’s military enterprises in the aspects of financing structure. With the analytical tools named stata11.0, the financial data of 4 military industry listed company from 2005 to 2013 have been used to do analysis of descriptive statistics and empirical analysis on the determinants of capital structure. Then with the method of comparative analysis, we study the characteristics of the capital structure of the military listed companies in the United States, Japan and the European Union countries. Based on the conclusion of empirical study and the characteristics of the capital structure of the military listed companies of other countries, suggestions on how to optimize the capital structure of military industry listed companies are presented.