Acknowledgements III
List of Figures IV
Glossary V
Chapter 1 Introduction 1
1.1 Background review 1
1.2 Research purpose and objectives 2
Chapter 2 Literature review 4
2.1 Introduction 4
2.2 The theory on contemporary capital structure 4
2.2.1 MM theory and correction models 5
2.2.2 Capital structure theory considering agency costs 9
2.2.3 Asymmetric information model 10
2.3 Factors influencing capital structure 13
2.3.1 Company size 14
2.3.2 Profitability 15
2.3.3 Non-debt tax shield 16
2.3.4 The value of asset-backed 16
2.3.5 Growth 17
2.3.6 The macro factors 17
2.3.7 Shares system factors 18
2.4. Summary 18
Chapter 3 Research methods 19
3.1 Research methodology chosen and justification 20
3.2 Research process 21
3.2.1 Determine the key factors affecting capital structure in China’s textile and garment industry 21
3.2.2 Quantitative analysis 25
3.3 Ethics 29
Chapter 4 Findings and Discussion 30
4.1 The Analysis of China’s textile and garment industry 30
4.1.1 Analysis of the current situation of listed companies in China's textile and garment industry 32
4.1.2 Present situation and problems of capital structure of listed Companies in China’s textile and garment industry 33
4.1.3 Theoretical analysis of the influencing factors of listed companies in China's textile and garment industry 34
4.1.4 Definition of variables 35
4.2 Empirical Results Analysis 37
4.2.1 Descriptive statistical analysis 37
4.2.2 Multicollinearity test 38
4.2.3 Multiple regression results analysis 39
4.2.4 Hypothesis test 39
References 43
Appendix 1: Pearson correlation coefficients from 2006 to 2010 52
Appendix 2: Multiple regression results (the short-term debt ratio as the dependent variable) from 2006 to 2010 54
Appendix 3: Multiple regression results (the total liabilities ratio as the dependent variable) from 2006 to 2010 56
Chapter 1 Introduction 介绍
1.1 Background reviewModern business philosophy’s objective is to pursue maximization of corporate value. Capital structure is related to the security, growth and creditors of the enterprise. Therefore, how to properly finance to reach appropriate capital structure is the crucial matters for the management authorities. To construct capital structure is an important content of the corporate financial management. The reasonable capital structure will affect the future development of enterprises. The governance structure of the company has its particularity in different industries. The study on factors affecting listed companies’ capital structure in China’s textile and garment industry can enrich the empirical study of capital structure of labor-intensive industries. The study and exploration around this developme
