Analysis on Financial Structure and Influencing Factors of Retail Listed Companies in China

Based on the analysis of sample data of retail listed companies in China from 2007 to 2011, this paper describes the current situation of the financial structure of retail listed companies in China and explores the relevant influencing factors. From the perspective of external financing of present Chinese retail listed companies, the authors possess more debt financing than equity financing and more indirect financing than direct financing. In order to find out the overall characteristic of financing structure of retail listed companies in China, debt-to-asset ratio, equity financing ratio, debt financing ratio, direct financing ratio and indirect financing ratio are put into use for analysis. The financial structure of retail listed company is mainly influenced by factors from three different levels, the macro level, the industrial level and the company level where there exists more influencing factors. By regression analysis on firm size, profitability, solvency, operation capacity, growth and collateral value, we draw the effect of company level factors to the financial structure of retail listed company. The conclusion shows that profitability, solvency, operation ability and collateral value have significant influence on financing structure, and firm size and growth have limited impact on financing decisions. Retail listed companies can make adjustments according to different effects of the influencing factors to optimize the financing structures and promote further development of the company.