An Empirical Study on the Choice of Capital Structure from the Perspective of Regional Difference

Researches on capital structure are dependent on the specific economic environment. China is at the stage of the transition economy and the unbalanced development of regional economy causes the remarkable regional difference in terms of external financing environment. Based on the western capital structure theory, the authors select 725 A-stock listed companies of Shanghai and Shenzhen from 2001 to 2010 as samples to analyze the choice of capital structure from the perspective of regional difference. According to the analyses of regional panel data regression, the authors can find that the choice of capital structure in the east, the west and the midland exist prominent regional difference.