The Impact Of Information Disclosure Quality, Capital Cost On Capital Structure Dynamic Adjustment

Capital structure decision has always been an important topic in corporate financial management.At present,due to the expansion of credit and the continuous loose monetary policy of the Central Bank,a large number of companies are over-reliance on debt financing.This has led to a situation in which companies focus on bank financing and lights securities market financing,and the capital structure is seriously unreasonable.Therefore,we must conscientiously do a good job of information disclosure,strengthen financial leverage constraints,conscientiously abide by the principle of self-regulation of the trading market,reasonably expand financing channels,effectively control corporate asset-liability ratios,and constantly adjust corporate capital structure to a reasonable level in a timely manner to achieve maximum corporate value.In view of this,the paper starts from the theory of dynamic capital structure and information asymmetry,and discusses whether enterprises can speed up the adjustment of the target capital structure by changing the level of information disclosure quality or changing the cost of capital under the constraints of adjusting costs.The paper selects the data of listed companies in the A-share manufacturing industry of the Shenzhen Stock Market from 2009 to2016 as a sample.Based on existing studies,taking the capital structure dynamic adjustment as the explained variables,taking the capital cost,the information disclosure quality,and the interaction terms as explanatory variables,performing a fixed-effect regression analysis on partial dynamic adjustment models.The paper divides the information disclosure quality into two groups,and discusses the impact of the capital structure dynamic adjustment on the response sensitivity of capital cost under the different levels of information disclosure quality.It shows that the information disclosure quality is positively correlated with the capital structure dynamic adjustment,while the capital cost is negatively correlated with capital structure dynamic adjustment.Relative to the low-quality group,the speed of the capital structure adjustment is more sensitive to the reaction of capital cost in higher group,that is,as the quality of information disclosure increases,the impact of capital cost on the adjustment has increased.Therefore,the companies can increase the transparency and reduce financing costs by proactively improving the quality of information disclosed,thereby speeding up the adjustment of the company's target capital structure and maximizing the value of the company.