An Empirical Research: The Determining Factors of Capital Structure of Strategic Emerging Industry, Based on Data of Listed Enterprises in China


This paper used relevant research of capital structure as reference in consideration of strategic emerging industry, pointed put forward nine hypotheses. The samples of the empirical research are 224 listed enterprises from Shanghai and Shenzhen stock markets in the year 2012. The research showed that trade factor had influence on capital structure, and profitability was the key influence factor. Besides, firm size, growth and asset liquidity were also the influence factors.

Share and Cite:

Chen, J. (2015) An Empirical Research: The Determining Factors of Capital Structure of Strategic Emerging Industry, Based on Data of Listed Enterprises in China. Modern Economy, 6, 458-464. doi: 10.4236/me.2015.64043.

Conflicts of Interest

The authors declare no conflicts of interest.


[1] Collins, J.M. and Sekely, W.S. ((1972)) The Relationship of Headquarters Country and Industry Classification to Financial Structure. Financial Management, 12, 45-51.
[2] Schwartz, E. and Aronson, J.R. (1967) Some Surrogate Evidence in Support of the Concept of Optimal Financial Structure. Journal of Finance, 22, 10-18.
[3] Salehi, M. and Manesh, N.B. (2012) A Study of the Roles of Firm and Country on Specific Determinates in Capital Structure: Iranian Evidence. International Management Review, 8, 51-62.
[4] Harris, M. and Raviv, A. (1991) The Theory of Capital Structure. Journal of Finance, 46, 297-355.
[5] Mallikarjunappa, T. and Goveas, C. (2007) Factors Determining the Capital Structure of Pharmaceutical Companies in India. ICFAI Journal of Applied Finance, 13, 56-72.
[6] Baltaci, N. and Ayaydin, H. (2014) Firm, Country and Macroeconomic Determinants of Capital Structure: Evidence from Turkish Banking Sector. EMAJ: Emerging Markets Journal, 3, 47-58.
[7] Chang, C., Chen, X. and Liao, G. (2014) What Are the Reliably Important Determinants of Capital Structure in China? Pacific-Basin Finance Journal, 30, 87-113.
[8] Dong, Y., Liu, Z., Shen, Z., et al. (2014) Political Patronage and Capital Structure in China. Emerging Markets Finance & Trade, 50, 102-125.
[9] Seelanatha, S.L. (2010) Determinants of Capital Structure: Further Evidence from China. Economics, Management & Financial Markets, 5, 106-126.
[10] Warner, J.B. (1977) Bankruptcy Costs: Some Evidence. Journal of Finance, 32, 337-347.
[11] DeAngelo, H. and Masulis, R.W. (1980) Optimal Capital Structure under Corporate and Personal Taxation. Journal of Financial Economics, 8, 3-29.
[12] Prowse, S.D. (1990) Institutional Investment Patterns and Corporate Financial Behavior in the United States and Japan. Journal of Financial Economics, 27, 43-66.

Copyright © 2023 by authors and Scientific Research Publishing Inc.

Creative Commons License

This work and the related PDF file are licensed under a Creative Commons Attribution 4.0 International License.