Empirical Study On Factors Of Capital Structure: Based On The Dynamic Adjustment Model

Capital is the basis for production and operation of corporation. Capital structure directly affect the cost of capital and management structure, thereby affecting the enterprise value. In the West, since the naissance of MM theory, capital structure theory has aroused widespread concerns in academic circles, and achieved fruitful research results, developed a series of capital structure theory. China is in the planned economy era for a long-time, and the opening of it's market is very late, the company system was imperfect, so capital structure research in china started much later than the Western countries. In recent years, scholars has do a lot of researches on the capital structure of Chinese enterprises and fetch a large number of research results, but there is still a big gap in this era comparing to the West. It is necessary to continue in-depth study. Because each countries' economic conditions are unique, and the practices of economic activities is complex, also the research methods and emphasis is different, the results of empirical research and theory is not exactly the same, or even opposite conclusions. Unlike western countries, Chinese capital market and the governance structure of listed companies has its own characteristics, continue research in this background affect our capital structure of listed companies determinants of macroeconomic policy adjustment and micro-listed company has a strong capital structure optimization practical significance.This paper summarizes factors related to domestic and international capital structure empirical research, review of capital structure theorys origin, development and actuality, to study the Chinese listed company's capital structural factors from a new starting point - the perspective of risk and utility, consider that the determinations of the capital structure should be the business portfolio risk. On this basis, this article has get 589 company's financial data, establish a panel data model to explain the variable risk factors, according to the dynamic capital structure theoretical ideas. In this paper we use the system GMM estimation method to estimate the dynamic adjustment model. .The empirical results show that the risk does affect the capital structure , we suggest the enterprises must fully consider the risks in its capital structure decision-making。...