A Study On The Influence Of Chinese Religion On The Capital Structure Of Listed Companies

Since MM theory was published,the research of capital structure has been the hotspot at home and abroad.It is generally believed that the rational capital structure of listed companies helps to reduce the cost,arrange the risk and realize the value of the enterprise.The capital structure of listed companies has been affected by many factors.Most scholars focus on the relationship between formal institution and corporate capital structure,but pay less attention to the informal institution.The religious belief is the an important part in informal institution,so this paper attempts to start from the perspective of religion,study Chinese religious influence on the capital structure of listed companies and the relationship between the capital structure adjustment speed of religious belief.This paper collected the Chinese A-share listed companies from 2005 to 2015 data,with reference to the research on the capital structure of domestic and international experience and based on the dynamic panel data model built the speed of capital structure adjustment model and dynamic adjustment of capital structure model.The empirical results show that the capital structure of Chinese listed companies is different,and in the place with strong religious atmosphere,the capital structure is lower.In this paper,we study the negative correlation between religion and capital structure,because the higher the value of religious atmosphere,the less the debt,the more the owner's equity.Then the paper also explores the relationship between religious atmosphere and the adjusting speed of capital structure,the capital structure is either higher or lower than the target capital structure,listed companies are not willing to quickly adjust the capital structure.In this paper,it is speculated that the enterprises affected by religion will avoid the risk,so they don't want to adjust the capital structure.It can be seen from the results that the impact of religion has reduced the value of capital structure of enterprises which is conducive to enterprises to reduce risk,stable operation.But on the other hand,it will make the enterprise be afraid of risk,and can not operate the enterprise in the best condition.Therefore,from the point of view of religion,the state should improve the construction of capital market.Enterprises should measure the different factors in different directions and make decisions that are good for the enterprise.Investors should take into account the cultural and religious belief when they make decisions.