Analysis of the Effect of Credit Fluctuation on Capital Structure of Listed Companies: A Research Direction Based on Industry Perspective

Kai WU, Tiegang ZHANG, Wen YANG


Based on the industry heterogeneity, this paper uses the data of Listed Companies in the A stock market of China for 2003-2015 years to study the impact of credit volatility on the capital structure. The results show that both the credit fluctuation and the capital structure are positively related to the listed companies in different industries, but the significant level is different. During the different policy period, this paper studies the effect of credit fluctuation on the capital structure of listed companies under the heterogeneity of policy environment. The empirical results show that after considering the heterogeneity of industries, the relationship between credit volatility and capital structure of listed companies is different under different policy environments. In the environment of loose credit, there is a significant positive correlation between the credit fluctuation and the capital structure of the listed companies in different industries. But under the tight and steady credit environment, the relationship between the credit fluctuation and the capital structure of the listed companies in different industries is not significant. Based on this, this paper puts forward the policy suggestions to optimize the capital structure of the listed companies.


Credit fluctuation; Capital structure; Heterogeneity

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