The Dynamic Adjustment Of Listed Companies' Capital Structure In China

In the complex modern environment and economic system, for any business, its capital structure has been constantly influenced by a variety of factors, thus the capital structure always present a dynamic condition. In-depth study of the dynamic properties and the adjustment process of the capital structure will have significance meaning for enterprises to better adapt the internal and external environmental changes, to manage capital and to improve corporate value.Basing on the basic theory of capital structure, this thesis systematically expounded theory various factors, discussed the various factors affecting the capital structure and properties of dynamic capital structure, integrated China's current macro-economic and capital market conditions, used the latest data on listed companies and released the assumptions of the dynamic model to make a empirical study to test the relationship between the listed companies of china and the various factors from a dynamic perspective. Besides, we can indirectly validate the existence of adjustment costs for the capital structure adjustment of listed companies in China, and further to analyze the adjust speed and the optimal rate.Regarding the empirical method, with the premise that the external factors and industrial factors have been controlled, we use dynamic panel data to build the time-varying model of capital structure of listed companies in China, and use nonlinear least squares method to make regression analysis. Compare the capital structure factors of China's listed company comprehensively and systematically from static, quasi-dynamic and dynamic repressively, we can find that dynamic model has more explanatory power than the static model and quasi-dynamic model. The listed company has dynamic properties and the dynamic model is more realistic. Firm size significantly and positively related to the capital structure, while the asset liquidity, non-debt tax shield, profitability, liquidity and growth opportunities have significant negative correlation with the capital structure. Besides, China's overall debt ratio is low and there exists unique equity financing preference. The information technology industry and the wholesale and retail trade industry have the fastest adjustment speed ,which means the fast-growing and complete competitive industry has relatively fast adjustment speed; while monopoly industries such as transport and electricity,gas and water production and supply industry have the slowest adjustment speed.