Abstract: Abstract： How institutional change factors and entrepreneurial factors influence on the corporate capital structure is focused on. Empirical studies on how the six entrepreneurial factors influence on the book-valued liability rate (TL) are carried out by using 118 listed firm panel data (1993-2006). The result indicates that some of the entrepreneurial factors, namely, return on asset, size, non-debt tax shields, TOBIN’Q explain TL the most. However, the results widely differ from year to year when using cross-section data in same period. The important discorery is that both institutional change factor and entrepreneurial factor are the remarkable influence variables for corporate capital structure, when analyzing the historical data from 1993 to 2006 by means of ADF stationary test and regression method. The result shows that entrepreneurial factor correlates with book-valued liability rate positively and institutional change factor correlates with book-valued liability rate negatively.

Key words: corporate capital structure, entrepreneurial factor, institutional change