Dynamic Adjustment Of Stock Liquidity And Capital Structure

In recent years,as a new development of capital structure theory,the research on the dynamic adjustment of capital structure is being the focus of scholars.At present,China's financial system reform has been further promoted,the capital market has been continuously improved and matured,and the liquidity of the stock market has been greatly improved.The liquidity of the stock market is closely related to the effectiveness of resource allocation in the capital market.For the listed companies,the stock market,as the trading mechanism of shareholders' equity transfer,is also an important part of the external financing environment of the company.The characteristics of stock liquidity will also affect the level of corporate governance and financing decision-making activities.Based on this,from the perspective of corporate governance,this paper discusses how stock liquidity affects the dynamic adjustment of capital structure through a certain transmission mechanism,verifies the applicability of shareholder "Activism" and "exit threat" in China,and provides new support for the adjustment of corporate financial structure and its corresponding role in corporate governance in China.This paper adopts the research method of normative research and empirical research.Based on the theories of efficient hypothesis of capital market,information asymmetry,signal transmission and dynamic adjustment of capital structure,this paper analyzes the relationship among stock liquidity,corporate governance and dynamic adjustment of capital structure,and puts forward corresponding hypothesis.This paper selects the A-share listed companies of Shenzhen Stock Exchange from 2009 to 2018 as the research sample,constructs the partial adjustment model of capital structure and the intermediary effect test model,empirically tests the impact of stock liquidity on the speed and effect of capital structure adjustment,as well as the intermediary effect of corporate governance,and examines the impact of stock liquidity on corporate governance under different property rights.The results show that:(1)with the improvement of stock liquidity,the information content of stock price is graduallyenriched,and shareholders can choose to "voice" or " exit " through the equity market in time to increase shareholder power,that is,stock liquidity has a significant positive correlation with corporate governance;(2)there is more information asymmetry in the low liquidity market,and the overall risk of the company With the increase of premium and serious agency conflict,the financing cost and the friction of capital structure adjustment increase,that is,the speed and effect of stock liquidity on capital structure adjustment are significantly positively correlated;(3)with the increase of institutional shareholders' active voice,the friction of information flow decreases,and corporate governance plays a significant incomplete intermediary effect between stock liquidity and capital structure adjustment ?Finally,this paper summarizes the relevant empirical conclusions that we should further improve and innovate the operation mechanism and information disclosure mechanism of China's stock market,and pay attention to the monitoring and maintenance of stock liquidity;at the same time,China's companies need to form relevant arrangements for the establishment of diversified governance,pay attention to the dynamic management of capital structure,and improve the management efficiency of the company to realize the growth of value.