Studies of Influencing Factors on Capital Structure of the Public Listed Steel Companies of China
|School||Liaoning University of Science and Technology|
|Keywords||steel industry capital structure influencing factor|
Capital structure is a centralized reflection of shareholders’rights and obligations which determines the managing structure of corporations, and has further influences on their behavior characters and value, there-fore capital structure is“genes”of the modern corporations. Rational capital structure benefits the behavior and value of corporations. Due to the differences existing in the economic conditions of different countries, coupled with China’s immature capital market, factors affecting the capital structure are more complex and that results in many conflicts between China’s scholars’findings and the Western capital structure theory. Thus, while having research on the capital structure of listed companies in China’s steel industry, researchers should not copy capital structure theory but have study it on the basis of the overall market mechanism and China’s national conditions.As the backbone of our national economy sectors, steel industry has made a great contribution to the national economy. At the same time of the rapid development in steel industry, it also brings excess capacity and low industrial concentration problems. Having study on the factors which affects the steel industry capital structure, it will have very important theoretical and practical significance in optimizing the capital structure of the steel industry and maximizing the value of the enterprise.This paper uses the method of combining theory with practice all along, After reviewing the development process of the capital structure and its key findings, the essay describes the characteristics and the current development situation of the steel industry, and then analyzes some problems existing in the capital structure of listed companies in the steel industry. In the empirical analysis, the essay selects 32 steel companies for the sample and makes quantitative study of the factors affecting the capital structure. Through factor analysis and multiple linear regression analysis, the major factors affecting the listed company’s capital structure in the steel industry comes up. The essay also makes a summary of the factors’positive and negative correlation with the capital structure. Finally, based on the results from comparative analysis and empirical analysis, in the aspects of steel enterprise optimization and improving the external financing environment, the essay lists some proposal to optimize the capital structure of listed companies in the steel industry.