Research on the Influencing Factors of the Capital Structure of GEM Listed Companies in China
|School||Southwestern University of Finance and Economics|
|Keywords||Listed Company of Growth Enterprise Market Capital structure Influence factor Risk control|
The research on the theory of capital structure has being a hot topic in the area of financial theory for a longtime. At present the related theory research on the capital structure factor of listed company has being rich in the capital market. But the research on the Growth Enterprise Market just started. The formation of Growth Enterprise Market comes through longtime. Early in the1984, the National Science Council, which is the precursor of the Ministry of science and technology, offers the idea of constructing the investment mechanism so as to boost the development of high technology for the first time.Fifteen years later in1999, China securities regulatory commission put forward clearly the concept of Growth enterprise market. After argumentation and preparation in many ways,Gem finally set up in October23th,2009. One week later,28company stocks that passed to deliver came into the market.From opened,the Gem market in China has been developed Vigorously, and its booming prospect drew on numerous small and medium enterprises to make a landing,and on the average every2days a new companies become available in the market to trade.Up to October26th,2012, there are355companies listed on the Gem market.The Gem market is necessary to cultivate and improve the market mechanism of our country.The development of Gem market enriched the multi-layer structure of the our country capital market,and create condition for the high-tech small and medium enterprises in new area. At the same time,the character of high issue price, high PE ratio, super fund, high speed to make money,and unreasonable capital structure hidden big risk faced many doubts, make the problem of capital structure of companies listed in gem market become a theoretical, times and the inevitable topic.What influence the capital structure choice of the gem listed companies? To determine and identify the influencing factors of capital structure, and clear the quantitative relation between each other, is important to optimize the gem listed company capital structure, promote the healthy and stable development of the listed companies and capital market in our country.On the basis of review and comb, the writer research on gem listed company capital structure influencing factors from macroscopic to microcosmic, using related theories such as management and economics etc to solve this question. There are multivariate linear regression model in the article used to empirically test of micro factors, trying to provide useful policy suggestions and data for optimizing the capital structure of China’s gem listed companies.This paper includes five parts:The part of introduction mainly explains and analyzes background, purpose,framework and significance of research.The part of literature review combs the achievement of domestic and foreign research on capital structure factors of listing corporation, summarizes the views and conclusions of effects of different factors on the capital structure,and analyzes reasons and related theory laid behind different views of scholars. Based on that, this part analyzes factors that might affect the capital structure of corporation listing in gem market.The theoretical analysis part mainly elaborates and deduces the influencing factors of the gem listed companies capital structure in our country from the macro and micro aspects, combining with the feature of the gem listed companies capital structure, so as to provide support for latter research hypothesis.The part of empirical analysis puts forward models which applied to analyze the relation between the influencing factors and capital structure. The research proves that the asset-liability ratio has significant negative correlation with non-debt tax shield, bankruptcy risk and control shareholders, positive correlation with growth and collateral value of assets, and no relationship with the debt capacity, agency cost and profitability.The part of suggestion argues on how to optimize the gem listed companies capital structure.The innovation of this paper mainly contain three aspects:(1) The paper analyzes various possible influencing factors of listed company capital structure from the macro and micro perspectives,to enrich research angle.Most previous research only analyzed from the microscopic perspective.(1) The paper imports variable quantities such as the bankruptcy risk, the controlling shareholder’s control right to enrich the research methods.(2) This paper offers the idea of formulating relevant policies of listed company capital structure according to risk. This paper argues that there are relationships between the gem listed company capital structure and the macro economic environment, the market operation pattern, and the enterprise financing ability.Based on that, the writer puts forward the model to improve company capital structure containing government regulation,market domination, and enterprise’s self improvement.The shortage of this paper mainly reflects in two aspects.:(1) There are limitation in the design of variable quantity and control quantity, leading to the R2of the model is not high,and there are maybe some boundedness of the research.(2) The part of empirical only considers the micro factor and doesn’t include the macroeconomic factors, so that the empirical research is not comprehensive enough.