Research Of Influencing Factors For Insurance Companies' Capital Structures In Our Country

From the perspective of financial leverage,the company's capital structure,can be understood as the ratio between company's debt capital and equity capital.Using financial leverage,a company can get some leverage interests,but also has to undertake a certain financial risk.Therefore,choosing a reasonable capital structure is particularly important for a company.The insurance industry is a special financial industry.Insurance business income,as a main source of funds,belongs to the category of debt financing,which determines the insurance industry itself has a high debt capital structure.It is this special capital structure characteristic that makes it important to study the influencing factors for insurance companies' capital structures.This article tries to study the influencing factors for insurance companies'capital structures.According to the related theory,it puts forward five research hypotheses,then it selects the panel data of a total of 395 insurance companies in our country as the research sample from the China insurance yearbooks.According to the theory of capital structure and the former related research results,it selects asset and liability ratio,long-term debt ratio,equity ratio,equity premium rates and reserve ratio as explained variables to measure the level of capital structure.Among them,only equity premium rates and reserve ratio are peculiar to the insurance company's capital structure level.Select company size,profitability,growth,asset collateral value,and reinsurance ratio as explanatory variables.It also selects company organization form,type,kind and maturity as control variables.After empirical test and robustness test,this article gets some conclusions as follows,company size is positively related to the level of capital structure,but all other factors such as profitability,growth,asset collateral value,and reinsurance ratio have no significant effects on insurance company's capital structure.