The Influence Of The Institutional Ownership To Capital Structure Adjustment

In order to cultivate a healthy and transparent capital market,it is necessary to improve the direct financing to reduce leverage,and the essence of deleveraging is the optimization of the capital structure in the enterprise financial management,that is,the dynamic adjustment of the capital structure.Research on the dynamic adjustment of capital structure has been one of the important topics in the field of financial and financial research.The topics has been studied by scholars from the enterprise internal characteristics,economic macro environment,political system,and so on.This article takes the institutional investor shareholding ratio as a new point,Firstly,capital structure and institutional investors were defined,and then use the agency theory,market timing theory,control theory and other five theory,analyzed the influence of institutional investors' Shareholding on the dynamic adjustment of capital structure in theory,so the hypothesis of this paper is deduced,and then based on the balanced date of Chinese listed firms from 2011-2015,an empirical analysis of the influence of institutional investors on the adjustment speed of dynamic capital structure,and analyzed the way and the efficiency of the adjustment.The result show that the institutional ownership has a positive relationship with the adjustment speed,With the institutional ownership become higher,the faster adjustment speed;In the path of capital structure adjustment,the enterprises with higher institutional ownership prefer to choose debt financing to achieve the target capital structure.Finally,we used the ratio of WACC between the target and the real capital structure to measure adjustment efficiency,it demonstrates the effectiveness of institutional ownership to the dynamic adjustment of capital structure.Finally,based on the empirical results,the characteristics of capital structure of Chinese enterprises are analyzed,and the mechanism of optimizing capital structure is put forward.Also combined with the governance role of institutional investors,for the government to regulate the distribution of market investors,standardize the management of the securities market,improve institutional investors and such management approach provides a reference for policy formulation.