Managerial Risk Preference,corporate Governance And Capital Structure And Its Dynamic Adjustment

Modern capital structure theory shows that capital structure is an important part of enterprise financial operation.In recent years,capital structure,especially the dynamic capital structure,has become an important field in the study of capital structure theory.Scholars at home and abroad have carried out intentive research on the related issues of capital structure from the perspective of enterprise itself,legal environent,macroeconomic environment and industry characteristics,and formed a large number of research results.But in these studies,there is little research literature from the perspective of managers' irrational behavior,but few studies only from the perspective of managerial overconfidence,Never mind taking into account managers' risk preference and capital structure and dynamic adjustment.Moreover,with the development of behavioral economics,people realize the management as the core of the decision,has an important influence on the enterprise's investment and financing decisions,and their risk preferences as the behavior while facing the uncertainty of environent,will reflect the impact of the invisible to the management decision-making,more and more scholars began to pay attention to the role of risk preference in economic life.Therefore,this paper attempts to explore and analyze the relationship between managerial risk preference and capital structure and its dynamic adjustment from the perspective of managerial risk preference.At the same time,corporate governance is the effective means to solve the principal agent problem,supervising and restricting the irrational behavior of managersnon.So,this paper will take corporate governance into the scope of the study,and discuss how an effect the corporate governance will have on the relationship between risk preference and capital structure and dynamic adjustment.This paper takes the 2011-2015 years in two cities of Shenzhen and Shanghai A shares listed companies as a sample,the author reviews the existing literature on risk preference,capital structure and dynamic adjustment,managerial risk preference and capital structure,corporate governance and risk managers,based on risk preference theory,higher order theory,behavioral economics theory and the principal-agent theory,risk preference,finishing the logical relationship between corporate governance and capital structure and dynamic adjustment of the management and put forward hypothesis.On the basis of previous construction of capital structure adjustment between the three models,and from the individual level and company level selection of shareholding ratio,age,gender,risk assets,current ratio,quick ratio,cash ratio,shortlength rate of the eight indicators to measure managerial risk preference.From the six aspects of the board governance mechanism,equity structure,incentive mechanism of managers,governance mechanism of the board of supervisors,disclosure and transparency of financial information and holding structure,the level of corporate governance is measured.The capital structure is measured by asset liability ratio,and the capital structure deviation is obtained by fitting the target capital structure through fixed effect.Finally,the influence of managers' risk preference on capital structure,capital structure adjustment speed and capital structure deviation is tested by multiple regression,and the moderating role of corporate governance is further discussed.The results of this study show that: first,,managerial risk preference degree is higher,the level of debt is high;second,managerial risk preference degree is higher,the speed of adjustment of capital structure is slower,the greater the degree of deviation from the capital structure.Third,corporate governance can effectively alleviate the positive correlation between managerial risk preference and the level of debt,reducing the adverse effects of managerial risk preference on the capital structure adjustment speed,but the degree of deviation,the empirical results are not significant,he relations between the two factors need to be further studied for late comers.Accordingly,this paper puts forward three suggestions:first,to control the managerial risk preference,keep it moderate;second,improve enterprise financial decision procedure system,establish a scientific advance,during and after the event management evaluation system;third,improve the corporate governance mechanism,strengthen effective supervision of managers.This paper research capital structure from managerial risk preference innovatively,expected the research can enrich the theory of behavior economics and capital structure of enterprises,optimize capital structure,it has certain significance to evaluate the behaviors of managers.