Macroeconomic Condition Influence On Corporate Capital Structure

Any company is always in some kind of macroeconomic environment, so its capital structure is inevitably influenced by macroeconomic shocks. Our country is in the period of economic system transformation and economy booming, macroeconomic environment with uncertainty, so, the listed company's capital structure and the adjustment of the capital structure will no doubt be influenced tremendously. On the basis of previous studies, the paper puts the macro economic factors on the influence of the capital structure as the research object. Using the relevant data, this paper makes an in-depth analysis on capital structure under the influence of macroeconomic factorsFirstly, using micro-level data of listed companies, this paper studies the relation between company capital structure and macro economic factors under the static theory of capital structure. Using a panel fixed effects regression model and quantile regression model, this paper investigates the influence on listed company capital structure of Zhejiang province which is affected by macroeconomic factors (economic cycle, fiscal policy, monetary policy, stock market and macroeconomic stability). Then, according to the dynamic capital structure theory, this paper constructs a dynamic adjustment model. Using the dynamic panel GMM estimation, this paper tests the change of capital structure adjustment speed because of the influence of macroeconomic factors (economic cycle, fiscal policy, monetary policy, stock market and macroeconomic stability).The empirical results show that, macroeconomic factors are not only the important factor of company capital structure, but also have a significant impact on the capital structure adjustment speed. In the good macroeconomic environment, capital structure adjustment is fast. In addition, the company level characteristic variables play an important role on the actual capital structure and the target capital structure.