Research On The Effect Of Product Market Competition On The Capital Structure Of Listed Companies In China

For the development of listed companies,it is bound to face different capital structure choices in different periods,and also face the capital cost and financial risk brought by this choice.Different industries in different companies will face the characteristics of the product market competition,which affect the business in the process of making various decisions,including the inevitable choice of capital structure.The impact of different product market competition on the choice of capital structure has an important impact on the sustainable development of enterprises.Therefore,this article combs the whole development process of capital structure theory and the relationship between product market competition and capital structure.Starting with the definition of capital structure,this paper analyzes the current status of capital structure of listed companies in our country,The capital structure of listed companies has carried on the industry analysis,and then has carried on the theory analysis to the capital structure from the three aspects of the product market competition degree,the competitive strategy and the competitive environment.Based on the static and dynamic models,the paper uses the financial data of listed companies in our country to make an empirical analysis using O LS,FE,GMM and other measurement methods.After the descriptive statistics about the data of listed companies in our country,which used a linear and nonlinear analysis,the dynamic correlation analysis of the relationship between capital structure and product market competition was made and the final conclusion was drawn.Then through the static and dynamic analysis of the ind ustry,it is concluded that the impact of product market competition on the capital structure is affected by the characteristics of different industries.The main conclusions reached are as follows:(1)The results of dynamic analysis show that Tobin's Q is positively correlated with the capital structure.That is,the higher the Tobin's Q,the higher the debt-to-asset ratio,that is,the higher the product market competition,the lower the debt-to-asset ratio and the market competition The degree and the capital structure showed a negative correlation.Therefore,the final conclusion of this paper is that there is a negative correlation between product market competition and capital structure.(2)There is a significant difference in the degree of competition in the product market between different industries,and it is found that the real estate industry is the most competitive and the mining sector is the least competitive.(3)There are also different capital structures in different industries.According to the analysis results,the control variables in different industries have different influences on the choice of capital structure.Therefore,the choice of capital structure needs to be balanced in many ways and in all aspects.,which can not look at the industry in isolation.(4)The impact of product market competition on capital structure is obviously affected by industry factors.From the perspective of product market structure classification,the impact of product market competition on capital structure is not only affected by the market environment,but also by industry conditions.In the oligopoly industry,the impact of product market competition on the capital structure is negative.In the competitive industries,however,it is affected by the industry's own conditions,resulting in inconsistent impact directions.