Empirical Research On Capital Structure Of Chinese Listed Company With The Effect Of IPO Market Timing

In recent years,how to use different market timing opportunities to make optimal decisions has become one of the hottest issues in the study of enterprise capital structure.Market timing theory,as an important issue in behavioral corporate finance,studies that managers have a significant impact on the capital structure of enterprises by selecting different market timing under irrational conditions.The development of market timing theory not only expands the research direction of capital structure,but also provides a reasonable explanation for the financing heterogeneity in China's capital market.It can also help the management and investors to identify the best market timing,so as to grasp the best investment and financing opportunities.At the same time,it can also provide some institutional suggestions and references for regulators,and help optimize the resource allocation function of the securities market,which is of special significance for the long-term healthy and stable development of China's capital market.At present,many studies at home and abroad have proved the applicability of market timing theory in China,and there is a heated discussion on its impact on the capital structure.Most research results show that,different from foreign market experience,the impact of IPO market timing on corporate capital structure in China can only last for three to five years.However,up to now,most of the studies directly use foreign research methods,without considering the particularity of China's capital market,there are some limitations.Therefore,this article will review the domestic and foreign existing research results on the basis of market timing theory,further combining with the characteristics of the Chinese securities market,considering the regulators in the IPO process,using 10 years the main board IPO enterprise data of SSE(Shanghai Stock Exchange)and SZSE(Shenzhen Stock Exchange)from 2007 to 2017.Hence,the traditional market timing can be divided into regulators for regulatory need to select market timing and the enterprise to seek to maximize the enterprise value choice of market timing,and thus a more comprehensive analysis of the market timing effect on corporate capital structure.Results show that under the current system of initial public offerings in China,the IPO market timing includes not only the enterprise to choose its own market timing,also includes the choice of regulatory market timing,and the market regulator is the opportunity for the more significant impact on capital structure of enterprises,the influence will last five to eight years.