| Capital structure is one of the important content of company financial research field in recent years, domestic and foreign research mainly from the relationship between capital structure and market value, the relationship between capital structure and company operating performance, the relationship between capital structure and company earnings, and the relationship between capital structure and industry characteristics. The capital Structure of emerging stock market is still worth researching, especially on the determinants of the capital structure of China’s stock market.The rise of emerging market countries in the 1980s and 1990s, per capita income in emerging market countries is low, theirs’ capital markets is underdeveloped, the stock market value of only a small fraction of GDP, the level of industrialization is not high. China’s GNP per capita has not reached the level of high-income countries, the World Bank delineated. Development of China’s stock market is lagged, the market mechanism is immature. As an emerging stock market, Three classical theories of capital structure which better explain the capital structure of China’s stock market is the focus of this study.Capital structure is debt, preferred stock and common stock for the proportions of various funds on behalf of the company, mainly refers to company debt and equity capital ratio between the core problems of modern company finance research investment, company investment and financing decisions the theoretical basis, reasonable capital structure is conducive to maximize enterprise value. With firm size, non-debt tax shield and the company’s fixed assets increased, the financial leverage of China’s listed companies improved, but, the financial leverage of China’s listed companies improved with the company’s profitability decreases. At the same time, the financial leverage of China’s listed companies depends on growth opportunities and product uniqueness.Industrial enterprises is an important part of China’s economic development, Industrial enterprises plays an increasingly important role in the adjustment of economic development and economic structure. Comprehensive deepening reforms of the country’s economic, industrial enterprises play an important role. However, due to historical reasons and national economy, the majority of the capital structure of listed industrial companies is irrational, which requires listed companies to gradually industrial adjustment in the capital structure. Increasingly regulated stock market, the demand of investors and industry listed companies increased their value rising, the study of China’s industrial capital structure of listed companies has very important significance. Capital structure theory is an important part of the listed companies’ financial theory; optimal capital structure plays an important role in corporate governance. Through in-depth research on the research results at domestic and foreign, combined with Chinese listed companies Industry-specific features, research the capital structure of industry listed company. The purpose is to explore the impact of the determinants of the capital structure in China’s stock market.Based on the Shanghai A-share industrial listed companies’ data during 2008-2013 as the research sample, using OLS test methods. The financial leverage to be interpreted as a variable capital structure. There are six factors to examine the capital structure of China’s stock market, that is profitability, tangible assets, growth opportunities, company scale, non-debt tax shield and product uniqueness. Through elaborate domestic and foreign research on the status of the theory of capital structure, combined with China’s development history of the stock market, we research listed company’s capital structure, and examine the effects of capital structure determinants of capital to China’s stock market.The research results show that the three main theories of capital structure explain capital structure in China’s stock market. Which also highlight the characteristics of the capital structure in China’s stock market. The profitability and capital structure is a more significant negative correlation, tangible assets and capital structure is significantly positively correlation, company size and capital structure is a significant positive correlation, the correlation between growth opportunities, non-debt relations and the capital structure is not obvious, product uniqueness and capital structure is a significant positive correlation. Our goal is to optimize the capital structure of the company to maximize the value, the key is to maximize the value of balancing benefits and risks, measure the value of increased interest in the process among stakeholders. Reasonable financial behaviors have excellent capital structure. China’s industrial listed companies to follow the basic rules of the market economy, emphasizing corporate governance, the pursuit of rational capital structure.Finally, according to the research conclusion, we can put forward two countermeasures for enterprise financing capital structure. The company level, focusing on the company’s internal financing structure, combined by solvency and profitability, leverage returns. Focusing on long-term earnings stability and development; strengthen corporate governance, focusing on debt and equity balance. Ownership structure and corporate governance efficiency is not only reflected in the quality of the ownership structure, also reflected in the amount of the equity structure. Through debt and equity balance, to a certain extent, reduce agency costs. Institutionally, improve the financing environment for China’s listed companies, broaden the financing channels of listed companies, optimize the capital structure. Establishing a sound and effective multi-capital market, strengthen the supervision of listed companies financing behavior, strengthen information disclosure, building an effective signal transmission mechanism, establish and improve the information disclosure system. Improve relevant laws and regulations. |
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