Corporate Governance Characteristics And Dynamic Adjustment Of Capital Structure

Capital structure refers to the value composition and proportion relationship of various capitals of an enterprise,which is the result of financing combination in a certain period of time.Having a good capital structure can promote the stable and healthy development of the company.However,the capital structure of China's listed companies is extremely abnormal,there are many radical or conservative capital structure of the company.For companies with aggressive capital structure,higher capital structure will make the company face financial difficulties,insolvency;For a company with a conservative capital structure,a lower capital structure means that the company cannot make full use of the debt tax shield to bring benefits,which will have a certain impact on the improvement of the company's value and future development.Since the extreme abnormal phenomenon of capital structure is common in China's listed companies,it is of great significance to put forward corresponding measures to improve capital structure.Corporate governance is the important factors influencing the capital structure dynamic adjustment,practice has proved that the higher the quality of corporate governance,the more help to reduce the agency cost between management and shareholders,to enhance the transparency of information,so as to help the company managers pay attention to the value of the company to promote,through improving the company's capital decisions,reduce the deviation of the company's internal financial indicators,the final implementation to the value of the company growth,so the company governance and significant correlation between the capital structure dynamic adjustment.By combing the existing literature in the field of capital structure adjustment at home and abroad,this paper summarizes the previous research results,analyzes the theory of dynamic adjustment of capital structure on the basis of principal-agent theory,timing theory,tradeoff theory and optimal sequence financing theory,and puts forward relevant hypotheses.With the data of Shanghai and Shenzhen a-share listed companies from 2007 to 2017 as samples,the proposed research hypothesis is empirically analyzed by Statal3.0 software and A conclusion is drawn.This paper consists of six parts.The first part,introduction.According to the descriptive statistical results of the capital structure of listed companies in China,the research background and theme of this paper are elaborated,and the significance of this paper is discussed from the theoretical and practical perspectives.Finally,the research content,methods and main innovation points of this paper are elaborated.The second part,literature review.In this paper,the dynamic theory of modern and nodern capital structure is analyzed from two aspects of internal and external influencing factors,in which the influence of corporate governance on dynamic adjustment of capital structure among internal factors is emphatically expounded,the conclusions of previous studies are summarized,and a brief review is made.The third part is theoretical analysis and research hypothesis.It includes defining the key concepts,reviewing and summarizing the optimal financing theory and market timing theory,analyzing the dynamic theory of capital structure,and making reasonable assumptions on the relationship between corporate governance and dynamic adjustment of capital structure on the basis of theoretical analysis.The fourth part is empirical test.The paper demonstrates the source and selection process of samples,establishes the basic regression model,designs and defines the main variables,quantifies the dynamic adjustment of corporate governance and capital structure,and prepares for the next empirical analysis.The fifth part is empirical analysis.Descriptive statistical analysis and correlation analysis were made for the selected sample data,empirical regression was conducted,and robustness test was conducted.The sixth part,research conclusion,suggestion and prospect.Systematic analysis of the results of the study,draw the corresponding conclusions,and put forward targeted recommendations.Finally,according to the problems encountered in the process of paper writing and research,the limitations of this paper are pointed out and the direction for further research is pointed out.The results of this paper show that there are extreme outliers in China,s corporate capital structure,and companies have radical or conservative capital structure.From the perspective of the specific factors of corporate governance,the large board of directors and the combination of management roles will make the actual capital structure deviate from the target capital structure to a greater extent and adjust at a slower pace.The higher the proportion of independent directors,management incentives and institutional investors' shareholding degree,the smaller the deviation degree of the actual capital structure from the target capital structure and the faster the adjustment speed.The larger the size of the company's TMT network and the more connected companies,the more the company's capital structure decisions will be affected,the greater the deviation degree of the company's capital structure,and the slower the speed of capital structure adjustment.The innovation of this paper has two aspects:first,it studies the impact of corporate governance on capital structure adjustment through specific corporate governance factors and corporate governance quality,creatively introduces the TMT management relationship network in the selection of corporate governance factors,and studies the relationship on capital structure adjustment from a new perspective.Second,adopt unbiased capital structure adjustment model to measure,make the result more objective and true.