Abstract
In this article, we selected 25 electric power listed companies in the electric power industry as the samples to study the influences of micro factors on the capital structure of listed companies, and the sample period was from 2002 to 2007, and these micro factors mainly included company scale, profitability, growth, non-debt tax shields, fluidity and capital structure. The research results showed that the company scale, non-debt tax shields and assets structure were not significantly correlated with the capital structure, and the profitability was significantly negatively correlated with the capital structure, and the fluidity of the assets was negatively correlated with the capital structure. Finally, we put forward that the share-reform and the macro influencing factors should be further researched.
Highlights
Combining the empirical results with the balance theory, we can obtain the result that the listed company with strong profitability has relatively low financial risk, so the enterprise can select the high capital structure ratio, so the profitability and debt ratio present a positive correlation relationship
Taking the primary business income logarithm and the assets guarantee value as the explanation variables to regressively analyze, the results indicated that though the enterprise scale presented positive correlation with the debt ratio, but the relation was not significant
Taking the total assets change ratio as the explanation variable, the result indicated that the company growth and the debt ratio presented negative correlation, but the relation was not significant
Summary
The results of the empirical research on the relationship between the enterprise scale and the debt ratio can be divided into three sorts. (1) The debt ration and the enterprise scale showed a negative correlation. (1) The debt ration and the enterprise scale showed a negative correlation. Taking the assets guarantee values and the total assets logarithm as the explanation variables, the empirical analysis indicated that both variables presented significant negative correlation, and with the expansion of the scale of the listed company, the debt would decline. Taking the primary business income logarithm and the assets guarantee value as the explanation variables to regressively analyze, the results indicated that though the enterprise scale presented positive correlation with the debt ratio, but the relation was not significant. (3) The debt ratio and the enterprise scale showed a positive correlation. Taking the total assets or the total assets logarithm as the explanation variable, the result indicated that the enterprise scale was larger, the debt level was higher. The enterprise with larger scale has stronger credit, and it is more inclined to diversification strategy or the vertical integration to enhance the effective and disperse the risks, and the enterprise could possess low anticipated bankrupt cost and more debt, and the enterprise scale is larger, it is more to obtain the support of the government and the bank credit, so the enterprise scale and the debt ratio present positive correlation
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