The Research On Capital Structure Adjustment Speed In Chinese Listed Companies

Discussion of capital structure has begun as early as1958. It is MM theory, whichthinks that without the consideration of tax. The value of the company has nothing to dowith capital structure. But the capital market has friction. Then scholars broaden differentassumption. The trade-off theory, market for corporate control and the pecking ordertheory appeared. They discussed in-depth the optimizing of capital structure. As animportant aspect，capital structure adjustment speed is included in the optimization of thecapital structure，which has related to profitability and viability of corporate，also becomethe focus of attention of entrepreneurs.With the consideration of the importance of capital structure adjustment speed， onthe basis of the previous literature， this article select China food and beveragemanufacturing as an sample. This article gets the estimated value to the target capitalstructure. Then take advantage of adjustment speed model，we estimates capital structureadjustment speed and analyze effect factors of capital structure adjustment speed.Firstly，this article describes the meaning and background of capital structure theory.We summarize the previous literature about capital structure and capital structureadjustment speed. The basic concept of capital structure and capital structure adjustmentspeed are delimited. This article analyzes current situation in capital structure adjustmentspeed of food and beverage manufacturing in China. Secondly we made empiricalanalysis in the relationship between effect factors and capital structure adjustment speed.Finally we reach the conclusion and give the appropriate recommendations.