| The Interest Rate liberalization started at the central bank liberalized inter bank offered rate in 1996, it has been implemented for 20 years. The limits of loan interest rates have been fully liberalized, the deposit interest rate ceilings are gradually liberalized,marking the Chinese Interest Rate liberalization reforms walking into the acceleration phase.Interest rate reform is an important content of China’s financial reform, interest rate as the price signals of funds will subject to market, the impact on the efficiency of resource allocation structure, which will have a huge impact on the commercial banks and corporations. In this paper, the interest rate market, one of the important micro-foundation business, discusses the impact of fluctuations in the market for corporate capital structure.Considering the number of existing scholars use dummies or benchmark deposit and lending rates to measure the interest rate liberalization, and do not reflect the real situation of the interest rate liberalization. This paper attempts to build interest rate index to study the relationship between fluctuations in capital structure and interest rate liberalization. By study the panel data A-share listed companies from 2002 to 2014,we found that : The capital structure is negatively correlated with the interest rate liberalization.With the progress of interest rate liberalization, the fluctuation of captial structure is more smaller, corporate finance structure more stabilized. Tt has explains that the Interest Rate Liberalization strengthen the efficiency of equity and debt governance, help to reduce the financial risk of the enterprise, improve the value of corporate. Besides,at different scale and at different levels of debt, the Interest Rate liberalization policy have different influences in the structure of volatility. |
