A Decision Engineering Method to Identify Effect on Product Market Competitive Performance

AbstractThis paper classifies the Chinese listed companies according to CSRC’ s industry classification standard, and conducts an empirical study on the capital structure's effect on firm's product market competitive performance based on the data of the listed companies in China A share market from 1996 to 2009. Empirical results reveal that capital structure has different impacts on firm's product market competitive performance in different industries, also asset-liability ratio and long-term debt ratio may have different impacts on firm's product market competitive performance to the same industry. This study has great enlightenment to firms in their decision making: firm's capital decision making must base on the industrial characteristic and balance the component of different terms’ debt