Empirical Study on Differentiating Factors of Capital Structure of China's Manufacturing Listed Companies

This paper analyzed differentiating factors of China's manufacturing listed companies, from 2008 to 2012, based on company size, profitability, liquidity and growth, using 0.4 and 0.6 as critical points of asset-liability ratio. The results showed that liquidity is the most significant factor when asset-liability ratio is less than 0.6, and profitability is the most significant factor when asset-liability ratio is greater than 0.6. Additionally, profitability and growth presented opposite correlations with capital structure in different assetliability ratio sections, while company size presented weakly positive correlation and liquidity presented strongly positive correlation with assetliability ratio.