The Impact Of Geographical Distance On The Preference Of Financial Leverage Adjustment Of Listed Companies

With the development of China's capital market,the number of listed companies has increased,the issuance scale of equity securities and fixed income securities has been gradually expanded,and the financial market has been flourishing.In this context,the study of the impact of the spatial cost on the listed companies' leverage adjustment behavior is of great significance to the financing decisions of listed companies and the construction of the capital market.We selected geographic distance as a proxy variable for spatial cost.However,the location of the enterprise has the characteristics that can not be changed,so the enterprise can only reduce the cost of financing by changing the original behavior preference in the process of selecting the lever.Then,according to the market conditions and attributes of each listed company,this paper makes a comparative analysis of the role of geographical distance in adjusting the financial leverage of enterprises.And based on this,set up logistic Model to carry on relevant empirical research and test.This paper uses a total of 50,000 large sample data,that the first quarter of 2009 to the fourth quarter of 2015 from 1606 A-share non-ST stock listed companies,to test the distance from the financial center of listed companies and its timing adjustment of financial leverage Relationship.Through a number of comparative analysis,we found that the distance between listed companies from the financial center can influence the choice of leverage adjustment preferences,and with the increase of geographical distance,enterprises are increasingly inclined to adopt the expansion of financial adjustment behavior.But relative to the issuance of equity financing,geographical distance more encourage enterprises to finance through issuing bonds.Furthermore,when the corporate leverage is high,the geographic distance variable is no longer significant in the model of the firm's choice of leverage.When the enterprise leverage is low,the geographic distance encourages the enterprise to adjust the leverage ratio through the bond issuance behavior.Finally,we also found that there is a "change in viscosity" when adjusting financial leverage from a listed company far from a financial center that will take advantage of the market opportunity to increase its own leverage when the market is better,and if the market is in recession No better choice,companies are more willing to maintain the status quo.