Research On The Dynamic Adjustment Of Capital Structure In The Scope Of Human Capital

The papers on the study of the theoretical and empirical research have supplied the proof of some factors, but so far, there has not any evidence about the factor of human capital. So by this way, we are going to intake the factor of human capital into capital structure on the basis of the results of the other researches. Using theories of corporate governance and behavioral finance for reference, we discuss the close relationship between capital structure and human capital and we hope to do some intensive research. Also, we use the PCA to evaluate the level of human capital.On the aspect of empirical research, we take the dynamic process of the capital structure adjustment into consideration, and study the optimization of capital structure from dynamic perspective. We construct a dynamic adjustment model of capital structure and employ the situation and statistic data methodology to make empirical study of Chinese-listed companies, and we also study the adjustment speed to provide some evidences to the innovation and adjustment of capital structure.On basis of foregoing analysis, this paper comes to conclusions as follows:(1) In the modern knowledge economic society, the human capital is playing a very important role and it has the potential linkage with competitive power and the market value of the enterprise. It has also become the dominant capital, so it has the vital effect on the capital structure.(2) The features of human capital exert the influence on capital structure from different points. The estimation results reveal that human capital factor does have the considerable influence on capital structure, and the debt level is negatively related to the size, profitability, non-debt tax shields, uniqueness and liquidity, positively related to the tangibility, growth and inflation.(3) Chinese-listed companies do have the dynamic adjustment process toward the optimal capital structure and it is more practical to apply the dynamic adjustment model to the empirical research. The leverage of the last period has remarkable effect on the optimal capital structure. Besides, there is a moderate adjustment costs in dynamic adjustment and the speed to attain the optimal capital structure is fairly quick in china.Besides, based on the analysis we believe that Chinese-listed companies are also available with the capital structure theory in western countries. We provide a certain evidence for the agency-cost theory and pecking-order theory, but the signal transmission theory does not work well in China.