The Impact Of Agency Cost On The Dynamic Adjustment Of The Enterprise Capital Structure

This paper studies the impact of two types of agency costs on the dynamic adjustment of corporate capital structure.Firstly,this paper clarifies the research background that the agency problem of Chinese enterprises is serious and the capital structure adjustment is not in place.It explains the academic value and practical significance of this research.It summarizes the related literatures,and finds that there are still few literatures on the agency cost's impact of dynamic adjustment,and there is room for further research and necessity;then the research content,research framework,research methods and innovations of this paper are expounded.Then this paper defines and interprets related concepts,summarizes the relevant theories involved in the article,and analyzes the reasons for the decline of the dynamic adjustment rate of the capital structure of enterprises based on relevant theories based on the previous theories.It puts forward the assumption that the executive agent and the major shareholder agency problem will reduce the speed of capital structure adjustment;the external environment environment factors such as the legal environment,the Punishment by the China Securities Regulatory Commission(CSRC),the analyst tracking,and the nature of the property rights of the firm have adjustment function.The theoretical analysis of the influence of agency cost on the adjustment of capital structure and capital structure deviation is proposed and related hypotheses are put forward.This paper then describes the source of the data,the research model,and the connotations of the variables used in the model and their metrics.Combined with the research of scholars at home and abroad,this paper proposes a dynamic adjustment model of capital structure including agency costs,legal environment,CSRC penalties,analyst tracking and the nature of corporate property rights.At the same time,a logit regression model for verifying the impact of agency problems on the adjustment of corporate capital structure and a regression model for verifying the impact of agency problems on capital structure deviation are proposed.After completing theoretical analysis,proposing hypotheses and establishing research models,this paper uses sample data for empirical analysis and draws relevant conclusions.The descriptive statistics,correlation analysis and regression analysis of the data show that the existence of the agent cost and the agent cost of the major shareholders will make the adjustment of the capital structure of the enterprise decline.The factors such as the punishment of the CSRC,the follow-up of analysts,and the nature of corporate property rights can adjust the impact of agency costs on the speed of capital structure adjustment.The improvement of the legal environment accelerates the dynamic adjustment of capital structure but fail to effectively regulate the agency problem.At the same time,the paper also concludes that the executive agent meeting and the major shareholder agency problem will promote the company to increase the debt and increase the form of cash dividends to adjust the capital structure,and will inhibit the company's use of reducing debt and increasing equity financing to adjust the capital structure.The increase in agent cost will increase deviation of the capital structure of the enterprise.Finally,based on the results of empirical analysis,this paper summarizes the relevant conclusions and proposes suggestions such as strengthen the construction of the executive supervision and incentive mechanism,improve the corporate equity governance structure,improve the legal environment,strengthen the supervision and punishment of the CSRC,and give full play to the analysts in the capital.the regulatory role in the process of structural adjustment,and prospects for future research directions.