Study On Capital Structure Dynamic Adjustment Of Listed Company From The Perspective Of Governance

Company capital structure can fully reflect the composition and proportion of various company capital value, capital structure decision is an important financial decision, affect the company’s sustained and healthy growth, so the capital structure decision-making has been the focus of the academic circle and practice circle. With the rise of the dynamic capital structure theory, the research on the dynamic adjustment of capital structure become "focus in focus". However, at present our country listed company capital structure anomalies have arisen, excessive high or excessive low level of capital structure in part listed companies of our company continues existing, Make the actual cause,the reason may source from two points:one is that the listed companies of our country are lack of consciousness on the target capital structure and dynamic adjustment; second is that part listed companies of our country do not understand how to choose the target capital structure, how to carry out the capital structure adjustment.Throughout the current literature is not difficult to find, although scholars began to pay attention to the importance of selecting target capital structure and dynamic adjustment of capital structure research, but the research also has many deficiencies, outstanding problem is that the existing research about the capital structure dynamic adjustment focuses on the influence of macroeconomic environment, fiscal and tax policy and market process and other factors on the dynamic capital structure adjustment, emphasize the "passive adaptation" process of the company capital structure dynamic adjustment, and lack of the "initiative exploration" process from the internal and external company governance perspective, and previous research on capital structure adjustment speed and capital structure adjustment path variables, lack research on capital structure adjustment effects. This paper argues that the research of above deficiencies can help company managers to alleviate the listing corporation’s capital structure anomalies, and promote the realization of the capital structure dynamic optimization.Based on the above analysis, use the 2003-2013 A-share listed company data of Shenzhen Stock Exchange, and use the dynamic capital structure adjustment from the perspective of governance as the theme, on the basis of literature review and theoretical deduction conduct the following research:First, Measure the company’s target capital structure.Use the regression and the experience value combination method to measure the target capital structure, through evaluation and selection of regression result, take it with the capital structure of the industry average annual, industry median annual and annual net profit rate of the top ten as a proxy for target capital structure. The results showed that the listed company capital structure should be kept at around 31.07%, besides the system GMM regression method for estimating results and annual net profit rate of the top ten companies capital structure mean is the most similar with the estimation of the target capital structure.Second, the effect of product market competition on the capital structure adjustment effect and its mechanism. Based on the theory of industrial organization, market structure theory and the dynamic capital structure theory research, make capital structure adjustment cost as the breakthrough point,propose the information effect and the proxy effect hypothesis of product market competition affects the capital structure adjustment, and ues the number of entrepreneurs inevery industry, Herfindahl index and industry listed company number three indicators to measure the degree of product market competition.Test results show that the product market competition is conducive to the improvement of the capital structure adjustment effect, and find that product market competition mainly through information effect to promote the realization of capital structure dynamic adjustment, agency effect has not been fully confirmed the reason may be that the external manager market imperfect cause the competition pressure does no fulliy played. In addition, this article also examines and confirms in the same industry, the influence of different listing corporation’s competitive position on the capital structure adjustment effect.Third,the effect of internal governance on capital structure adjustment effect and its mechanism. Based on the thought of corporate governance theory, agency cost theory and dynamic capital structure theory, make the cost of capital structure adjustment as the breakthrough point, propose the information effect and the proxy effect hypothesis of internal corporate governance effect on the capital structure adjustment effect, and from shareholders governance, board governance, supervisor governance, manager governance four levels,22 variables construct the corporate governance quality index and conduct the empirical test. Empirical results show that internal corporate governance can effectively promote the improvement of capital structure adjustment effect,and corporate internal governance mainly through proxy effect play a role on capital structure adjustment effect,information effect has not been fully confirmed the reason may be the perfection of the internal corporate governance more strengthened the mandatory information disclosure,compared to voluntary information disclosure,the marginal effect of mandatory information disclosure is limited. In addition, in order to ensure the reliability of corporate governance quality in this paper, in the robustness test, use the net rate, Tobin Q value to reflect the company’s value conduct the reliability test.Fourth, examine the interaction effect of internal and external governance on the influence of capital structure adjustment effect. Based on super property rights theory and dynamic capital structure theory, examined the difference effect of corporate governance quality and corporate governance mechanism under different competitive environment.The empirical results show that, the effect of corporate internal governance on capital structure adjustment is regulated by product market competition, under the condition of low product market competition, the effect of high quality internal corporate governance on capital structure adjustment promotion is more obvious. In addition, between product market competition and corporate governance mechanisms exist certain alternative or complementary effect.Fifth, according to the results of empirical research, from the internal and external company governance and the fusion perspective constructed the listed companies capital structure dynamic optimization model, and put forward " set up the consciousness of target capital structure, perfect the internal governance, improve the information disclosure, improve the company’s competitive position, break the monopoly of industry, pay attention to internal and external governance fusion, improve the professional manager market and pay attention to the optimization of the capital market" optimization measures.