| The research on the capital structure has been an important field of finance for a long time. However, in the existing literature, the study of capital structure applying dynamic theory is relatively limited, and it is rare to study individual industry. Given the information technology(IT) industry leads in strategic emerging industry, macro environment and the internal factors have a great impact on its capital structure with particularity. Therefore, we select the listed companies of IT industry as the research sample, and conduct in-depth study of the influence factors of capital structure based on dynamic theory.Based on the review of capital structure theory and the empirical research, this paper combines IT firms’ characteristics with capital structure theory to conduct in-depth analysis of influencing factors of target capital structure and adjustment speed. In the empirical study part, the paper sets unbalanced panel data of A-share listed companies of IT industry between 2005-2014 as sample, and uses capital structure dynamic adjustment model to test it with system GMM method. The results show that firm size positively affects the target capital structure; profitability, growth and interest rates negatively affect the target capital structure, tangible assets, economic growth and stock market returns has no effect on the target capital structure. As for the influence factors of adjustment speed of capital structure, firm size and growth are positive factors, economic growth and stock market returns are negative factors, interest rates is not the influence factor. Based on this, the paper examines the main factors that affect the capital structure of IT firms with different characteristics furtherly. To highlight the superiority of dynamic adjustment model, the paper also gives a static model and the results. This paper provides not only guidance for IT corporates to make financing decisions, but also reference for the government to improve external financing environment. |
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