Research on the capital structure influencing factors applied the data-mining technique: A validating study based on listed companies in China

Capital structure is one of the most basic and important research fields in the theory of corporate finance. Most of western corporations keep to the theory of sequence financing made by Myers and make debts as their priority in external financing considering it can enhance the corporate value. In China, however, the strong preference of equity financing and low debt rate is diametrically opposed to the theory of capital structure and financing sequence. This paper validates the applicability of the theory of capital structure in China by applying the data-mining technique. It is committed to optimizing Chinese corporationspsila capital structures by pointing out the corresponding relationship between the portfolio of corporation characters and different capital structures.