Monetary Policy,Firm Growth And Capital Structure Fluctuation

There are many researches about capital structure at home and abroad. The main content of the study is the influence factors of capital structure and the subjective process of the choice of optimal capital structure. Most of the capital structure theories proclaim that capital structure will affect the enterprise value. Enterprises' choice of capital structure is related to the size of the value of the enterprise. The volatility of capital structure will affect the enterprise's capital cost and financial risk, and ultimately affect the enterprise value. However, there are few researches about the capital structure fluctuation. The capital structure fluctuation is the objective change of enterprise capital structure. Therefore, it is necessary to study the influence factors of the volatility of capital structure. What factors influence fluctuations in capital structure is not clear.Domestic and foreign scholars have done a lot of research about the impact of enterprise growth on the capital structure, and whether the enterprises growth will promote the volatility of capital structure is also the focus of this paper. In this paper, we study the factors affecting the volatility of capital structure. We focus on the factors that affect the growth of enterprises, the relationship between the growth of capital structure and the volatility of capital structure and the relationship between corporate growth and capital structure under different monetary policy conditions. In this article,based on the financial data of A share listed firms from Shanghai Security Exchange and Shenzhen Security Exchange(2003-2014) for the study sample. I put forward the research hypothesis and use empirical analysis to verify the hypothesis proposed in this paper. The results show that there is a positive correlation between corporate growth and capital structure volatility. In the presence of financing constraints, the extent of capital structure fluctuation is influenced by financing constraints. The higher the financing constraints, the greater the capital structure fluctuations are. Considered the impact of monetary policy, the extent of the growth of enterprises promotes the capital structure fluctuations smaller in the easy-money policy than the monetary tightening policy.