Purpose/SignificanceBased on the current focus of the national policy and strategy, this paper studies the capital structure impact of civil-military integration listed company on stock liquidity, and considers whether the nature of the property has further impact on this relationship. The purpose of the study is to improve stock liquidity of civil-military integration of state-owned and non-state-owned listed companies in China.

Methods/ProcessFirstly, the paper puts forward the research problems on the basis of the key strategies of the government. Then, it reviews the literature on the impact of capital structure on stock liquidity and impact of property nature on the relationship between the two, and proposes the significance of the research and the deficiency of existing literature. Finally, it establishes a multiple regression model to analyze empirically the impact of capital structure of civil-military integration listed companies on stock liquidity, and studies further the impact of capital structure of state-owned and non-state-owned civil-military integration listed companies on stock liquidity by taking property rights into consideration.

Result/ConclusionThe results show that civil-military integrated listed companies with high debt have weaker stock liquidity when property rights are not taken into consideration. Considering the nature of property rights further, the capital structure of state-owned and non-state-owned military and civilian integrated listed companies shows great differences in the impact of stock liquidity.