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Empirical studies of the main factors of the capital structure of listed companies

Author: WangJing¡¡LuWei¡¡WanMin From: www.yourpaper.net Posted: 2009-11-17 21:49:19 Read:
[Abstract] According to the Shanghai Stock Market Industry Classification listed companies in 2007, the food and beverage industry in the manufacturing sector is selected as samples, collected data from the published annual report, on the statistical analysis of the correlation of the influencing factors of capital structure and capital structure .
[Keywords] listed companies' capital structure influencing factors

Background

Capital structure issues related to the interests of shareholders, managers and creditors tripartite and conflict affect corporate financing and investment behavior, the efficiency of resource allocation and its operating activities, the impact of factors affecting corporate capital structure, enhance corporate value and market resources allocative efficiency has important practical significance. This article on the Shanghai Stock Exchange listed companies in 2007 by industry groups, calculated on statistical indicators of the capital structure. Multiple regression analysis and control industry factors. A-share listed companies in the Shanghai Stock Exchange in 2007 manufacturing enterprises of the food and beverage industry, for a total of 36 samples, the empirical analysis the use of EVIEWS statistical software.

Second, the research methods and data selected

The research hypothesis hypothesis: industry factors on capital structure has a significant impact. Hypothesis 2: profitability and capital structure (debt ratio (long-term)) negative correlation. Hypothesis 3: firm size and capital structure are related. Hypothesis 4: The collateral value of assets and capital structure are related. Hypothesis 5: growth is positively related to the capital structure.
Variable set dependent variable: debt ratio: Y 1 = total liabilities / total assets (end of the period)
Long term debt to equity ratio: Y 2 = long-term liabilities / total assets (end of the period) independent variables: profitability: X 3 = Net profit / size of the main business income: LNS = the natural logarithm of the main business revenue (revenue from principal business unit: million)
The value of asset-backed: X 3 = (inventory fixed assets) / total assets (end of the period)
Growth (rate): X 4 = (end of period total assets - beginning of period total assets) / total assets at beginning of period
3 samples and data sources
Data taken from the annual report released by the Shanghai Stock Exchange listed companies, food and beverage industry in the A-share listed companies in the Shanghai Stock Exchange in 2007 manufacturing enterprises, a total of 36 as a sample.
Limitations of the study (1) is limited by the data, the Factors Influencing limited to four, the explanatory power of the model is subject to certain effects. (2) only the analysis of cross-sectional data on 2007 data, there may be a phenomenon of heteroscedasticity. (3) Due to the limitations of the data and control industry factors, only on the food and beverage industry empirical studies, the findings may not be able to extend it to other industries.

Third, the empirical results

1 basic statistical analysis
Industry Classification according to the Shanghai Stock Exchange (2007), selected industries in more than 10 companies, basic statistical analysis and calculation of Table 1: (Shanghai Stock Exchange in 2007 in different sectors of the liabilities ratio)

There is a clear difference from Table 1, the capital structure of the different industries. Gearing ratio "maximum", the highest and the lowest difference of 11.5699; gearing ratio "minimum", the highest and the lowest difference of 0.2490; "average" in the debt ratio, the maximum and minimum difference of 0.9625. The difference is due to the asset structure of different industries, operating cycle, development prospects vary. Samples of the food and beverage industry correlation coefficient analysis
By correlation coefficient analysis can be found: (1) the correlation coefficient between the respective variables are not significant, there is no multicollinearity problem; (2) The debt ratio Y 1 , LNS Y 1 is related to the same sign (hypothesis 3) the X 3 with Y- of 1 was negatively correlated with the same sign (hypothesis 2), X- the 3 with Y- 1 negative correlation (Hypothesis 4 opposite sign), these three variables Y 1 of the correlation coefficient is less than 0.3, the relevant The resistance is not very obvious. , X 4 with Y- of positive correlation (hypothesis 5 symbols), and a correlation coefficient of 0.4056, obvious; (3) long-term debt ratio Y for 2 , X 3 with Y- of 2 positively correlated (Hypothesis 2 opposite sign), the LNS and Y 2 negative correlation (hypothesis 3 opposite sign) the X 3 with Y- of 2 negative correlation (hypothesis 4 opposite sign), the X- 4 and Y 2 positive correlation (and hypotheses 5 symbols match), these four variables and Y 2 , the correlation coefficient is less than 0.3, the correlation are not obvious.
Y 1 regression analysis regression analysis of Y 1
Y 1 =-0.20-0.03X 3 0.04 LNS 0.15 X 3 0.07 X 4
(-0.51) (-0.49) (1.47) (0.99) (2.42)
R 2 = 0.23, DW = 1.87, F = 2.36
By regression found that: (1) The LNS X 3 X 3 Y 1 estimated coefficients can not be ¦Á = 0.05 significant level t test, therefore, for the 2007 Shanghai stock food and beverage industry, the value of size, profitability, asset-backed debt ratio did not significantly affect this negate the hypothesis 2, hypothesis 3 and hypothesis 4; (2) X 4 and Y 1 estimated coefficients by t test, it is further to do regression analysis:
Y 1 = 0.41 0.05 X 4 (2.59) R 2 = 0.16, DW = 1.91, F = 6.70
Regression analysis: alone X 4 Y 1 regression, the estimated coefficient by t test, F test results would be ideal, indicating X 4 Y 1 significant impact (positive correlation), confirming the hypothesis 5.
4. On the Y 2 of regression analysis the Y- 2 regression analysis: Y 2 = 0.20 0.001 X 3 -0.01LNS-0.06X 3 -0.02X 4
(1.34) (0.07) (-1.04) (-0.96) (-0.20) R 2 = 0.07, DW = 2.13, F = 0.55
Description of long-term debt ratio Y 2 , the estimated coefficients of the independent variables are not the significance level ¦Á = 0.05 t-test, F test results are not satisfactory, the independent variables and Y 2 also not significant, weakly range.

Conclusions

1. Different capital structure of the industry, there is a clear difference in empirical research should try to control the industry factors.
2007 Shanghai stock food and beverage industry listed companies (the same), the growth of the capital structure significantly.
3. Profitability, size, asset collateral value, and other factors had no significant effect on the capital structure.
Four factors of profitability, scale, the value of asset-backed growth of long-term debt ratio is not significant.

References:
[1] Sheridan Titman and Roberto Wessels.TheDeterminants of Capital Structure Choice.TheJournal of Finance, VOL.XLIII, No.1, March1988.
[2] Huang, Chintan, Huang Lanying capital structure of the business combination performance [J]. The Taiwan banks Quarterly, 1997,46 (4).
[3] Lu Zhengfei enterprises moderate liabilities theoretical analysis and empirical research [J]. Economic Research, 1996.
[4] Wu Shinong-analysis of the efficiency of China's securities market [J]. Economic Research, 1996. (4).
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