Study On The Impact Of Stock Liquidity On Capital Structure Under The Perspective Of Yield Difference

With the rapid development of Chinese stock market more and more enterprises choose through the stock market to raise funds.At the same time,stock liquidity has influence on the stock market efficiency and it is the key factor in the cost of financing,so the stock liquidity has a certain extent effect to the capital structure of listed companies.This paper tries to combine the financial market microstructure theory and corporate finance theory and study stock liquidity on the influence of capital structure under the perspective of different yield level of the stock in order to provide feasible suggestions to investors investment strategy and operation and management of listed companies.First,on the base of the existing theory,this paper summarized theoretically that stock liquidity and capital structure influence each other.Because current stock liquidity measure index is not unified,so the choice of liquidity measure index is important.Using Fama-Macbeth two-stage regression and quantile regression method,drawing the empirical conclusion that turnover is suitable for measurement in low yields on stock liquidity,and Amihud is suitable for measurement in middle-high yields.Moreover,the effect of stock liquidity on capital structure is studied which is the focus of this paper.First summarize the influencing factors.Then through a single equation of estimation method and simultaneous equations system estimate method,the empirical conclude stock liquidity and capital structure has significantly negative relationship between each other and with the improvement of stock yield level,the stronger interaction occurs.Finally,the sample is further divided to test of the empirical results.Based on the theory of capital structure dynamic adjustment,building whole partial adjustment model and Nerlove dynamic model studies the dynamic effect of stock liquidity on capital structure,the empirical results show that the stock liquidity level is higher,the faster the capital structure dynamic adjustment.Based on the relationship between stock liquidity and capital structure,this paper suggests that investors should pay attention to the financial statement information of listed companies and focus on the change of their asset-liability ratio.For listed companies,choosing equity financing is a change of financing cost that takes full account of the changeof stock liquidity to choose reasonable financing opportunities and methods.