Abstract In this paper, listed firms’ financing decision is exported by studying the relationship between return variance of stock market and firms’ capital structure decision. The empirical study shows that the level of firm’s debt ration is positively correlated with return variance of stock markets, especially for nonstateowned firms. We also find out that the stateowned firms prefer to make stock investments by their own cash flows because they have light external financing constraints and are easy to bypass the government supervision.
2012, Vol. 9 
