An Empirical Study On The Dynamic Adjustment Of Capital Structure Of Listed Companies In Jiangsu Province

Since the 1980 s, scholars turn their attention to dynamic study fields and analyze the choice of optimal corporate capital structure and dynamic study fields and analyze the choice of optimal corporate capital structure dynamic adjustment behavior based on the dynamic perspective. Dynamic adjustment of capital structure compared with the Static Trade-off on corporate capital structure decision-making is more convincing and explanatory. Thus this study becomes a hot spot in the domestic and foreign research in recent years.This paper selected 175 listing enterprises from Jiangsu province listed on the main board A-share as the study sample, got their data from year 2003 to year 2013 to establish the data model. Based on the capital structure dynamic trade-off theory, this paper carried out an empirical research on the determinants of capital structure and adjustment speed, calculated the specific value of adjustment speed and elaborated the dynamic adjustment behavior of capital structure of sample firms. First of all, this paper generalized the development evolution of capital structure theory and emphatically introduced the MM theory, the static trade-off theory and the dynamic adjustment theory. Then this paper drew a theory analysis framework according to the dynamic adjustment behavior of capital structure. In refers to the domestic and foreign literature and unifying the characteristics of sample enterprises, proposed basic research hypothesis of this paper. Finally, this paper selected variables from the company’s own, macroeconomic and non-financial stakeholders perspective to conduct the empirical research on the dynamic adjustment behavior of capital structure.Then the empirical study could be divided into three levels. The first level, this paper used the statistical method of descriptive statistics analysis to elaborate the current status of the capital structure and it’s determinants. And then it also analyzed the overall operating status. The second level, with the help of time series analysis, this paper intuitively expounded the relationship between capital structure and it’s determinants to compare the evolution trend. The third level, this paper constructed the dynamic adjustment of capital structure model and use the nonlinear least squares method to research the impact factors of optimal capital structure and the adjustment speed, and then calculate the optimal capital structure and adjustment speed value. The results showed that factors that had significant effect on the optimal capital structure are respectively financial expenditure growth rate, assets debt capacity, profitability, customer concentration, firm size, non-debt tax shield, cyclical, supplier negotiation force. And the factors that significantly affected the adjustment speed included the company size, profitability, growth, non-debt tax shield, asset debt capacity, fiscal expenditure growth rate, customer concentration. In addition, actual capital structure adjustment speed of listing Corporation in Jiangsu province was slow. So the company should take active measures to increase the adjustment speed of actual capital structure. At the same time, seen from the perspective of industry classification, there was a gap among inter industry. The overall speed of adjustment level was not high, which indirectly reflected that adjustment speed would affect the degree of optimization of capital structure.At the end of the article, based on the previous research conclusions, this paper made feasible recommendations to optimize the capital structure from aspects of national and enterprise. In short, in order to improve the situation of adjustment, enterprises need to strengthen their own management construction and the government must also publish support policy. Through mutual effort, thus improve the ability of the enterprise capital structure adjustment.