Abstract

AbstractCapital structure has a crucial influence on financing decisions of corporates. Based on previous literature surveys, this work thoroughly explores the direct and indirect relationship between tangible assets and capital structure in developed markets and emerging markets in both theoretical and empirical manner, and summaries previous literatures about on tangible assets and capital structure model in several aspects. First of all, this work reviews the factors that affect the capital structure and focuses on the impact of tangible assets on the capital structure. In addition, the influence of intangible assets on the capital structure is discussed. Moreover, this article discusses the significance of collateral and theoretically explains the relationship between tangible assets and capital structures. Finally, the proportion of tangible assets of developing country enterprises and the method of optimizing and adjusting the capital structure of companies are proposed.KeywordsTangible assetsCapital structureEnterprisesInvestment

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