The Capital Structure Decisions of Different Industries and Markets

Abstract

In the development of the economic market, capital structure has an important impact on enterprise development. It can influence the investing capital of enterprises and profits. So, enterprises in different industries choose different capital structures. Firstly, this paper introduces different opinions of scholars about capital structure and firm performance. Then, M&M theory will be introduced to analyze its advantages and limitations. Next, this paper will discuss the capital structure of different industries, mainly focusing on the retail industry, real estate industry, and the healthy technology industry; these industries are special in capital structure. Afterwards, this paper will analyze the capital structure of developing countries and developed countries, they have different capital structures and ways of financing, especially Vietnam and China. Finally, this paper makes a conclusion about different views on capital structure and explains the reasons that different industries and countries choose capital structure. Meanwhile, this part introduces the contribution of the paper and its drawbacks.