An Empirical Research On The Influence Of Core Orientation Of Corporate Culture On Capital Structure

Modern corporate financial theory research shows that the choice of corporate capital structure has an important influence on the financing cost and market value of the enterprise,and is closely related to the corporate governance structure.Through reviewing the literature,it is found that there are only a few studies that take corporate culture as an influencing factor.However,with the development of corporate culture management theory,in order to adapt to the trend of corporate reform,culture as a competitive tool is increasingly valued by corporate managers.Corporate culture gradually permeates into all aspects of enterprise management,and its influence on enterprise management is becoming more and more significant.And the core value of company as the core orientation of corporate culture leads the overall direction of corporate culture construction and play a decisive role in the management of the corporate.Corporate culture will affect the financial behavior of the enterprise.And capital structure decision-making is one of the important financial behaviors,cultural atmosphere and value pursuit will affect the willingness of corporate debt.Therefore,it is necessary to study the influence of the core orientation of corporate culture on the capital structure,so as to enrich the research on the influencing factors of capital structure and improve the rationality of financing decisions.This paper systematically combs the literature research on corporate culture and capital structure.Taking corporate culture theory,capital structure theory and corporate governance theory as the theoretical support of this paper,the content analysis method is used to analyze the core values of 512 listed companies in Shanghai Stock Exchange.As the measurement standard of the core orientation of corporate culture,it is coded to form five cultural orientations:Clan,Adhocracy,Market,Hierarchy,Ethics.Taking the asset-liability ratio as the dependent variable and the core orientation of corporate culture as the independent variable,a multi-regression model was established to conduct empirical tests.The results confirm that companies with flexible culture generally have lower levels of debt ratio,including clan orientation that affects human-specific capital investment and adhocracy orientation that affects R&D investment,while companies with control culture tend to have higher levels of debt ratio,including market orientation that focuses on competition and performance and hierarchy orientation that focuses on steady operation and regulation.There is no significant correlation between ethics orientation and capital structure.The nature of the enterprise will make a difference between the core orientation of the corporate culture and the capital structure.Compared with the state-owned enterprises,the correlations with the non-state-owned enterprises' clan orientation,adhocracy orientation,hierarchy orientation and capital structure are more relevant,and the market orientation and capital structure are not significantly relevant.This paper demonstrates that the core orientation of corporate culture has a significant impact on the company's capital structure,indicating that corporate culture plays an important role in corporate behavior and decision-making,researching and enriching the research on corporate culture and capital structure.Hope to provide some relevant opinions for business operators and investors.