Research On Effect Factors Of Capital Structure Adjustment Speed In Chinese Listed Companies

The study of capital structure has always been the focus of finance. And study on the adjustment speed and influential factors of capital structure is becoming the focus of academic study. In the increasingly fierce market competition, enterprises begin to pay attention to their capital structure to development themselves. That whether they can readjust the capital structure to a suitable level rapidly when facing a good investment opportunity, debt crisis and other situations, and that when the investment opportunity, debt crisis or other situations disappear, whether the enterprises can readjust the capital structure into the minimal capital cost to realize the maximum value of the enterprises, will influence the profitability and survivability of the enterprises.In order to improve the flexibility of adjustment decision of capital structure, help the enterprises understand their adjustment barrier, and enrich the study on the dynamic capital structure, this paper has systematically introduced the various influential factors of capital structure adjustment speed and put forward some suggestions to optimize the capital structure.Based on the theoretical analysis of the adjustment speed and influential factors of capital structure and traditional dynamic partial adjustment model, This paper has chosen related listed companies’ data from 2009 to 2013, and has measured and estimated the adjustment speed and influential factors by least squares method. The conclusion are:(1) every industry has its own feature and structure, in consequence, there is significant difference in industries of capital structure adjustment speed in China’s listed companies;(2) there is not significant relationship between asset tangibility, GDP’s growth, fiscal policy and capital structure adjustment speed, except that there is negative correlation between companies’ scale, internal retained ratio, risk of management and capital structure adjustment speed, other variables including deviation degree from target capital structure, profitability, growthiness, equity structure, he market sentiment have positive correlation with capital structure adjustment speed.This paper has performed empirical study to enrich the study on capital structure adjustment speed and provide evidence for companies’ capital structure adjustment. But with limitation of energy, this paper has some weaknesses which influence the accuracy of the research conclusion. With the development of economy and technology, the study conclusion on capital structure adjustment speed and influential factors will become more accurate.