Industrial-financial Integration And Dynamic Adjustment Of Capital Structure

One of the key points in a company's financial strategy lies in decisions related to capital structure.A large amount of literature has studied the capital structure from the perspective of static to dynamic: theoretical research has developed from static theory to dynamic trade-off theory,and empirical research has also risen from the determinants of static capital structure to the motivations and effects of dynamic adjustment of capital structure.By studying whether the Industrial-Financial Integration has an impact on the adjustment of corporate capital structure,it can be explored whether the relationship financing will have a positive impact on enterprises to ease financing constraints and promote their capital structure optimization.This paper selects the data of A-share listed companies in Shanghai and Shenzhen stock exchange from 2007 to 2018 as the research sample,and studies the most common behavior in China's domestic integration,which is the impact of the holding shares of bank on the dynamic adjustment of capital structure.This paper concludes that bank shareholding positively affects the adjustment of corporate leverage structure.Bank shareholding are significantly correlated to the speed of capital structure adjustment positively.Under other certain conditions,the capital structure of listed companies holding bank shares is dynamically adjusted faster than the listed companies that not holding bank shares.The degree of deviation between the bank shareholding and the capital structure is significantly negatively correlated,indicating that the deviation between current capital structure and target capital structure is smaller.When the company is underleveraged,the Industrial-Financial Integration will not only speed up the dynamic adjustment of the capital structure,but also make it continuously adjust downwards towards the target capital structure,that is,the deviation between the two is smaller,which is the better effect of the capital structure adjustment.When the company is over-leveraged,the impact of the Industrial-Financial Integration on the dynamic adjustment of the capital structure is not obvious.Compared with companies with weaker financing constraints,the holding corporates with stronger financial constraints have a more significant impact on the speed of capital structure adjustment,which will accelerate the speed of capital structure adjustment,and ultimately significantly reduce the degree of deviation between the actual capital structure and the target capital structure.Compared with the loose period of monetary policy,when the monetary policy tightens,the enterprises with bank shareholding have a more significant impact on the speed of capital structure adjustment,the capital structure adjustment speed is faster,and the effect of the adjustment effect is more significant,the degree of deviation is smaller.The research in this paper enriches the literature on the integration of industry and finance,as well as the dynamic adjustment of leverage.In the meantime,it has important reference significance for the government to introduce the policy of Industrial-Financial Integration and finance and the decision of capital structure of enterprises.