Research On The Influence Of Managerial Entrenchment On The Capital Structure Adjustment Speed Of Enterprises

Since the separation of ownership and operation rights, the agency problem between shareholders and managers has become a key topic of academic research,this problem was first proposed by Jansen and Mclean in the "agency cost theory".With the depth of corporate governance, in the traditional agent problem such as managers' abuse of cash flow, in fact the construction of "manager Empire", there has a large number ofliterature and related researches has been achieved effective results,which can be targeted to the problem of enterprise governance practice for reference.But on the problems of traditional agents, managers gain about the manager under job conflict which is called "managerial entrenchment" problem, our research is still at the starting stage, and has not formed a systematic theory on enterprise operation which could produce effective reference.This paper based the managerial entrenchment hypothesis on the relationship between managerial entrenchment and enterprise capital structure adjustment speed of the concrete analysis from the following five aspects. In the first part of the background study, expounds the main contents of this study, research characteristic and innovation. The second part is the related literature review, reviews the research conclusions drawn from the domestic and international research on this issue, and probes into the breakthrough point of this article. The third part is the theoretical analysis. Through the analysis of the managers' defensive motivation and the influencing factors, the paper explores the mechanism of the impact of managers'defensive defense on the adjustment speed of corporate capital structure. In the fourth part, constructing game model of defense motivation driven by managers to adjust the capital structure decision-making, analysis of the effect of ownership concentration of ownership structure on the dynamic adjustment of capital structure, to explore the influence of Managerial Entrenchment on the adjustment speed of the enterprise's capital structure for the path for the related research and lay the theoretical foundation.The fifth part through the construction of linear influence of Managerial Entrenchment on the adjustment speed of the enterprise's capital structure regressionmodel, with two listed on the main board of the company from December 31,2012 to December 31, 2016 financial data for the study sample, which can be divided into high debt and low debt samples were multiple linear regression analysis, this paper proposed the related hypothesis.The study found that managerial entrenchment has a significant impact on the speed of adjustment in capital structure, high debt and low debt, the company, based on the different degree of defense managers, this effect shows different effect, the conclusion of this study, lay the foundation for relief between shareholders and managers and the principal-agent problem to enhance the efficiency of corporate governance at the same time, also for the policy suggestions to improve internal supervision mechanism of state owned enterprises in China and strengthen the market competition mechanism to provide managers. In the last part of this article put forward the perfect manager market, re understanding of management incentive and constraint management improve internal environment and improve the mechanism of bankruptcy and takeover proposals,this research to guide the governance practice of Chinese enterprises will play a positive effect.