Empirical estimation of the capital structure’ influence on the capitalization rates of a Chinese international company

In recent months, the number of defaults on bonded loans by Chinese companies, including those with state participation, has increased. One of the reasons was the US sanctions against dozens of Chinese companies. Another reason is the high degree of debt burden on many companies. The authors conduct an empirical study of the capital structure of a Chinese state-owned chemical company. The two-factor descriptive model is applied to quantify the impact of equity and debt capital on the dynamics of the capitalization indicator. The results obtained allow us to deepen our understanding of the relationship between the indicators under consideration and the formation of the company's cash flow balance.