Relational Study Between Managerial Risk Preference And Capital Structure Dynamic Adjustment

According to modern capital structure theory,the capital structure theory is an extremely important part of corporate governance.In recent years,the dynamic capital structure decision has become an important research field in the theory of capital structure.Based on the related foreign theories,our country's scholars have made deep studies on the dynamic adjustment of capital structure and produced a large number of research results,which are from the perspective of enterprises,legal environment,the macroeconomic environment and industry characteristics and so on.However,these studies are less from the view of the managerial risk preference,and only a few research are mainly analysed from the dynamic perspective,which are not taking into account the relationship of management risk preference and capital structure of the dynamic changes.However,with the development of behavioral economics and experimental economics,the influence of managers' individual differences on enterprise decision-making is becoming more and more prominent.Therefore,this paper attempts to explore and analyze the relationship between managerial risk preference and dynamic adjustment of capital structure from the perspective of the influence of managerial risk preference and its change to capital structure.This paper selects manufacturing companies listed in Shenzhen SE and Shanghai SE before 2009 as sample.First,select evaluation indices from managers themselves and and companies two aspects respectively,construct managerial risk preference comprehensive evaluation model,and use the principal component analysis method to calculate the managerial risk preferences and analyze the managerial risk preference and its change.Second,from capital structure adjustment speed and deviation degree two aspects,estblish multiple regression model to examine influence on managerial risk preference and its change to dynamic adjustment of capital structure.In this paper,the main research conclusions are:(1)the higher degree of the management risk preference,the slower speed of enterprise capital structural adjustment;(2)the higher degree of risk preferences of the managers,the larger distance that actual capital structure deviates from the optimal capital structure;(3)When managerial risk preference changes,the capital structure adjusting speed and the deviation to target capital structure will be affected in different degree.What's more,compared to the weakness of managers' risk preference,enhancing the risk preferences of managers can slow down the adjusted speed of capital structure,and widening the distance from the target capital structure.According to these conclusions,this paper puts forward some ideas and suggestions on the control of risk preference,the team building of managers and the ways and means to improve the incentive and restraint mechanisms of managers.