Credit Fluctuation and Capital Structure: Based on the Evidence of Listed Companies in China
Kai Wu, Ph.D; Professor Tie-gang Zhang

Abstract
This paper studies the influence of credit fluctuations on capital structures from the credit supply side perspective. The results, based on an analysis of data from the Listed Companies in China's A share market from 2003-2015, show that there is a positive, significant correlation between credit fluctuations and the capital structure of listed companies. We also found that the difference of credit maturity has different influence on the capital structure of listed companies: the short-term credit growth rate and capital structure of listed companies is negatively correlated, in the long-term is the opposite. Based on this, this paper puts forward the policy recommendations to optimize the capital structure of listed companies.

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