Industrial Policy,interest Rate Marketization And Dynamic Adjustment Of Capital Structure

According to the dynamic capital composition theory,change of external macro factors and micro factors of enterprise will bring dynamic adjustment to capital structure.Interest rate liberalization,an important means of resource allocation,has an effect on capital composition adjustment of enterprises.So do the industrial policy.While,will industrial policy also have an important influence on capital composition adjustment? If so,what is the influence? The interest rate liberalization is an important part of the market economy.It is an invisible hand.The industrial policy,made by the government,is an important part of the planned economy.If the two are combined,how will the capital composition change?Based on the above problems,the writer first combs the literature of scholars at home and abroad,finding that the scholars have reached an agreement on how industrial policy and interest rate liberalization influence the capital composition.However,there are also some problems exist in their study.It is also found that no scholars have studied the interaction of the two factors will pose what kind of influence on the dynamic adjustment of capital composition.Therefore,this paper analyzes the influence mechanism of industrial policy,interest rate liberalization and the combination of the two on the enterprise capital composition from the theoretical level.Furthermore,the writer puts forward several hypotheses in this paper:(1)interest rate liberalization will improve the speed of adjustment on capital composition,and drive capital composition toward target capital composition;(2)industrial policy and interest rate liberalization have the same effect;(3)the combination of interest rate liberalization and industrial policy will strengthen this effect.In order to test the hypothesis,firstly,the writer discards the former discrete interest rate liberalization index and builds a continuous interest rate liberalization index.Secondly,the writer collects data of the industry in china supported by industrial policy from 1996 to 2015.Finally,based on the data of the non financial listed companies of Shanghai and Shenzhen A shares from 1996 to 2015,the writer uses local adjustment model of capital composition for empirical test,and comes to the following conclusions:(1)the promotion of interest rate liberalization can improve the speed of capital composition adjustment,and drive the capital composition toward target capital composition;(2)industrial policy and interest rate liberalization have the same effect on single factor.However,the combination of them is not a win-win co –operation,but weakens the role of the two when they exist alone.