Institutional Environment,Internal Control And Capital Structure Adjustment Speed

Capital structure is one of the core issues in corporate finance research.Since the introduction of MM theory in the 1950 s,a large number of scholars have carried out research on whether there is an optimal capital structure,and reached a consensus conclusion: Good capital structure really exists.With the emergence of dynamic trade-off theory,scholars found that the company's capital structure decision-making is a dynamic process of continuous optimization,and the study of capital structure has gradually evolved from static analysis to dynamic analysis today.At present,a large number of scholars have studied the influencing factors of the speed of capital structure adjustment from the macro and micro perspectives.Since the introduction of the basic internal control regulations in 2008,all main board companies have been included in the scope of internal control implementation.After years of exploration and research,the construction and implementation of China's internal control system has reached a relatively mature stage.At the same time,the theoretical community has shown great enthusiasm for the related research on internal control.Since high-quality internal control can play an active role in enterprise risk control and agency problems,this paper takes the economic consequences of internal control and the determinants of capital structure optimization speed as the starting point,and explores whether high-quality internal control can improve the optimization of the capital structure of the enterprise.In addition,the utility of internal control for the enterprise is not only affected by the establishment and implementation of the internal control system of the enterprise,its scale,risk and profitability,and also related to the institutional environment in which the enterprise is located.Therefore,this paper also studies the institutional environment as a moderator to explore its regulatory role in the relationship between internal control quality and capital structure adjustment speed.It supplements the literature on the relevant fields of the factors affecting the speed of capital structure adjustment.This paper first explains what are the dynamic adjustment of capital structure,internal control and institutional environment,and then summarizes the literature on the dynamic adjustment of capital structure and the internal control economic consequences.According to the trade-off theory,the principal-generation theory and the information asymmetry theory,this paper proposes four hypotheses and then select the 2012-2016 Shanghai and Shenzhen A-share listed companies as samples.The relationship between the three is verified by descriptive statistics,correlation analysis and multiple regression analysis,and robustness test.Finally,this paper draws the conclusions based on the empirical results and then put forward targeted policy recommendations and follow-up research directions.The research results of this paper show that:(1)high-quality internal control can significantly improve the capital structure optimization speed of enterprises,and can reduce the capital structure deviation degree of enterprises;(2)in areas with relatively low legal level,the quality of internal control The improvement of capital structure optimization speed is more obvious,and it can reduce the deviation of capital structure more.(3)Compared with state-owned enterprises,the internal control quality of non-state-owned enterprises has a more obvious effect on the optimization of capital structure optimization,and can be reduced more.Deviation of capital structure;(4)In areas with high degree of financial marketization,the effect of internal control quality on the optimization of capital structure is more obvious,and it can reduce the deviation of capital structure more.