Research On The Impact Of Cash Holdings Of Start Up Board Listed Companies On The Dynamic Adjustment Of Capital Structure

The issue of dynamic adjustment of capital structure has always been the hot topic discussed by academic circles at home and abroad.The theory of dynamic capital structure holds that there exists a target capital structure in an enterprise.Affected by adjustment costs and random events,an enterprise will inevitably deviate from its target capital structure.The capital structure decision of an enterprise is a dynamic process of constant weighing and adjustment.Founded in 2009,GEM board is a platform for financing and growing space for high-tech SMEs.It is an important supplement to the main board market and has become an indispensable part of China's capital market.The current research on the dynamic adjustment of capital structure mainly focuses on the main board market.However,with the continuous development of the GEM board,it has been found that enterprises rely on and prefer equity financing overly.Therefore,this paper takes the GEM board as the research object and studies the dynamic adjustment of the capital structure of the GEM board listed companies from the perspective of cash holding.Based on the literature and theoretical analysis at home and abroad,this paper uses the unbalanced panel data of 492 GEM board listed companies from 2009 to 2016 as the research sample.Firstly,the descriptive statistical analysis of the capital structure and cash holding level of GEM board is carried out and come to the result of the changing trend in cash holdings and capital structure of listed companies on GEM,as well as capital structure characteristics of various industries.By modeling the target capital structure model and the dynamic adjustment model of capital structure,the fixed-effects estimation method and systematic GMM board estimation method are used to empirically test the target capital structure of listed companies on the GEM board and its influencing factors,then calculate the speed of capital structure adjustment,and analyze cash holdings.The analysis finds that there is a target capital structure for the listed companies on the GEM board,with an average value of 26%,which is significantly affected by company characteristics such as company size and profitability.In addition,the rate of adjustment of the capital structure of listed companies on GEM board was 10.8%,and there was a significant difference in the adjustment rate of enterprises with different levels of liabilities.Then,through analysis,it is known that the cash holding level has a negative effect on the speed of capital structure adjustment of listed companies on GEM board.At the same time,when analyzing different industries and enterprises,it is found that the effect of cash holding level on the speed of capital structure adjustment shows a trend of marginal decline.Finally,according to the research conclusions,relevant policy suggestions are proposed from the aspects of capital structure management mechanism construction,cash holding decision-making etc.