Research On The Influence Of Bank Background Of Directors,Supervisors And Senior Managers On Dynamic Adjustment Of Enterprise Capital Structure

Maintaining a good capital structure is an inherent requirement for financial management goals to maximize corporate value.How to balance the costs and benefits of capital structure adjustment in a better way and to make the decisions of capital structure adjustment more active are topics that need to be taken into consideration continually by enterprises under the new normal of China's economy.As an important source of external funds for Chinese enterprises,bank loans have a significant impact on the capital structure of enterprises.Hiring directors,supervisors and senior managers with banking background can help enterprise to build the relationship network between bank and enterprise and gain the public social capital lies in it,which is of great significance to the decision of the dynamic adjustment of capital structure.Based on the dynamic adjustment theory of capital structure,the social capital theory and upper echelons theory,the research hypothesis of this paper was proposed.A total of 675 non-financial Chinese A-share listed companies from 2012 to 2017 were selected as the research samples.This paper explores the influence of bank background of directors,supervisors and senior managers on the dynamic adjustment of enterprise capital structure by the way of first difference GMM.The research finds that compared with the listed companies whose directors,supervisors or senior managers do not have or did not have bank background,the listed companies with bank background of directors,supervisors and senior managers go faster in dynamic adjustment of capital structure.And the speed of the capital structure adjustment will go faster when the proportion of directors,supervisors and senior managers with bank background increases.The further research results show that for enterprises with different property rights and different deviation degree of capital structure,the influence of both the bank background of directors,supervisors and senior managers and its depth degree on dynamic adjustment of capital structure varies.The accelerating effect of bank background of directors,supervisors and senior managers on the dynamic adjustment of the capital structure is more effective in non-state-owned enterprises or the enterprises whose diverge degree of capital structures is excessive.And the promoting effect will increase when bank background of directors,supervisors and senior managers deepens.The result of this paper enriches the research on the influencing factors of the dynamic adjustment of capital structure and provides the theoretical basis for enterprises to make rational use of public social capital when making capital structure decisions.