The Empirical Research On The Relationship Between The Level Of Marketization And The Speed Of Dynamic Adjustment Of Capital Structure

The target capital structure is a process that still in changing,the cognizance of this fact is the basis of dynamic capital structure theory.The perfect market does not exist in reality.The market characteristics such as the information asymmetry and weak effective market lead to deviation between the actual enterprise’s capital structure and target capital structure.So,if the enterprise wants to maximize the value and get optimal state,it need to constantly adjust the actual capital structure.How do the domestic listing corporations adjust the capital structure?What factors will impact the adjustment speed and whether the degree of factors influenced by other constraints?This paper had discussed these problems.With the deepening of market-oriented reform,the level of marketization is improved continuously,the level of marketization embodies the changes of macroeconomic environment,the dynamic capital structure theory shows that macroeconomic factors has important impact on the dynamic adjustment of capital structure of enterprises,and the level of marketization is an important performance of the changes of macroeconomic environment,so this paper mainly studies the influence of marketization level on enterprise’s dynamic adjustment speed of capital structure.This paper firstly introduces the background and significance of the study,and then collect relevant reviews and literature,which discussing the latest research achievements and historical research achievements of dynamic adjustment of enterprise capital structure.Foreign studies have been carried out to analyze the effects of macro and micro factors on the speed of capital structure adjustment.Compared with the domestic researches which spend more time on analyzing the micro factors,foreign studies are more comprehensive.Then define related key concepts of this article.The relation and difference between capital structure and financing structure are analyzed,which can help to understand the changes of capital structure.The static and dynamic changes of the market level are analyzed at the same time.Next on the basis of related theory the assumption of the factors that influencing the enterprise capital structure adjustment speed is put forward:the enterprise’s capital structure adjustment speed is related with the level of marketization,the macroeconomic conditions,as well as the financing constraints degree.In other words:the capital structure adjustment speed has correlation with the level of marketization.The higher the level is,the capital structure adjustment speed is faster.And the change of the level of marketization is related to the capital structure adjustment speed.The change of the market level is more,and the adjustment speed of capital structure is higher.The differences of the macroeconomic conditions also affect the capital structure adjustment speed.During the period when the macroeconomic conditions are economic prosperity,the higher the marketization levels are,the adjustment speeds are higher.At last,among the companies with lower financing constraints degree,the higher the marketization levels are,the adjustment speeds are higher.In this paper,the domestic manufacturing listing corporations are used as a starting point,mainly because the manufacturing industry is the core industry of our country and the impact of macroeconomic shocks in manufacturing industry is more significant.By using the panel data from domestic stock market of 1518 manufacturing listed companies from 1998 to 2013 as the research samples.After building a partial adjustment model of capital structure,empirically test the influence factors of capital structure adjustment speeds.The study found that:①the level of marketization has significant positive correlation with enterprise capital structure adjustment speed,②macroeconomic conditions positively related to the speed of capital structure adjustment,③financing constraints degree levels negatively related to the speed of capital structure adjustment.Finally,relevant policies and suggestions are put forward from the role of government,financial institutions and enterprises.At the same time,it also analyzes the innovations and limitations of the research in the course-of the-study,and the-future research directions are discussed.In this paper,several innovations were made about the study of dynamic adjustment of the capital structure.First of all,in the process of fitting the target capital,the two control variables,the macro economic cycle and the degree of financing constraints were added,combining the macro factors and micro factors.Secondly,in the analysis of the influence of the level of the marketization on the speed of capital structure adjustment,"one-step" method was used to get capital structure adjustment speed,which fully considering the relationship between the effect of target capital structure factors and speed adjustment factors.