An empirical study on the determinants of capital structure of Chinese Manufacturing listed companies

Yang, Jiayi (2017) An empirical study on the determinants of capital structure of Chinese Manufacturing listed companies. [Dissertation (University of Nottingham only)]

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Abstract

With the development of capital market, there has been more and more

enterprises financing channels, the enterprises capital structure would also

be adjusted. This shows that capital structure of the companies and the

development of capital market are closely related. The number of listed

companies in China's manufacturing companies takes up more than half of

the total number of listed companies. This paper attempts to introduce the

current situation of the capital structure of listed companies in Chinese

manufacturing industry, as well as investigates the elements that affect the

capital structure based on the firm level. Generally speaking, the

conclusions obtained in this research are in line with previous studies.

Growth opportunity, state ownership and firm size are positively connected

with long-term leverage; liquidity and firm size have a positive relationship

with short-term leverage; state ownership, liquidity and firm size are

positively connected with total debt ratio. In contrast, manager

shareholdings negatively relevant to long-term debt ratio; profitability as

well as non-debt tax shields are inversely connected with short-term

leverage and total leverage. This paper first introduces the background and

characteristics of listed companies in Chinese manufacturing industry, then

discusses the theories of capital structure. Moreover, it analyzes the

influencing factors of the company level with the theories of capital

structure. The study chooses manufacturing firms listed on the Shanghai

stock exchanges from 2010-2014, using multiple linear regression methods

to confirm that some firm-level factors have a considerable impact on

capital structure. Finally, according to the empirical conclusion, the paper

puts forward some limitations and provides several suggestions for

optimizing the capital structure.

Item Type: Dissertation (University of Nottingham only)
Depositing User: Yang, Jiayi
Date Deposited: 09 Apr 2018 15:34
Last Modified: 10 Apr 2018 15:34
URI: http://eprints.nottingham.ac.uk/id/eprint/45798

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