Research On The Capital Structure Of Technological Companies And Its Dynamic Optimization

Technological companies have become the most vigorous part of China’s economic growth, as well as the engine of industrial structure upgrading. Systematically studying the static and dynamic characteristics of these companies’capital structure, and finding out the factors of the optimization, are significant for the improvement of the capital use efficiency both in theory and reality.The paper firstly reviewed the development of classical theories on company capital structure, and then sorted out recent researches on the dynamic adjustment and the optimization of technological companies’ capital structure. The paper also analyzed current development stage of China’s technological companies and statistically described the features of their capital structure. The study innovatively constructed a dynamic adjustment model of capital structure for the technological companies, using panel data and nonlinear least squares method (NLS) to find out the characteristics, as well as the factors that affect the optimal capital structure and adjustment speed.As the result has shown, the dynamic adjustment model, compared to the static one, can better explain the characteristics of the technological companies when adjusting capital structure. The empirical results indicate that technology companies’ optimal capital structure is positively correlated with company size, R&D input and growth, and negatively correlated with liquidity ratio and profitability. The adjustment speed of capital structure is positively correlated with company size and growth while negatively correlated with distraction to the optional capital structure.The study, to some extent, overcame several limitations of the static model when analyzing capital structure and completed the analytical framework by adding the adjustment speed into the dynamic model. Also, the study would offer certain guidance to the research of the capital structure of technological companies.