Research On The Influence Of Ownership Structure On The Speed And Effect Of Capital Structure Dynamic Adjustment

The capital structure is one of the key factors that affect the development level of the enterprise,and the reasonable capital structure is beneficial to the improvement of enterprise value.The company’s proper debt can reduce the cost of capital,however,when the debt ratio is too high,not only the debt cost will offset the leveraged income,but also the financial risk will increase.Therefore,the company needs to make the best debt ratio,that is,the best capital structure,making the weighted average cost of capital the lowest,while the enterprise value is the largest.From the MM theory to the trade-off theory,the agent theory and the optimal order financing theory,the scholars have always focused on capital structure research from different perspectives and constantly improved the theory of capital structure.The study of capital structure has gradually changed from static research to dynamic adjustment research.The ownership structure is the basis of corporate governance mechanism,which determines the shareholder structure,the degree of ownership concentration and the status of major shareholders,which leads to a great difference between the way and effect of the shareholders exercising power.It also has a great influence on the formation,operation and performance of the corporate governance model.And strengthening the internal governance of the company is the key to promote the dynamic adjustment of the capital structure.Therefore,based on this analysis,these questions have been raised:Will the ownership structure affect the speed and effect of the dynamic adjustment of the capital structure?This article will be divided into five parts to explain the above problems.In the introduction,the background and significance of the study are discussed first,then combs the related literature research at home and abroad,and expounds the research train of thought,method and possible innovation.The second part introduces the related concepts of the ownership structure and the dynamic adjustment of the capital structure,and introduces the theory of agency cost theory,trade-off theory and optimization theory.The third part is to analyze the current situation of the ownership structure and the capital structure of our country,and then put forward the research hypothesis based on the basic theory.The fourth part is the empirical research.The research object is the non-financial insurance listed companies of A shares in Shanghai and Shenzhen from 2012 to 2016,define the variables,build a regression model,and do descriptive statistics,correlation analysis and regression analysis to verify the proposed research hypothesis.Finally,in the fifth part,we draw the conclusions of this study and put forward some relevant suggestions.Based on the relationship between the ownership structure and the dynamic adjustment of capital structure as a new perspective,using normative research and empirical research,and the results are obtained show that:(1)There is a positive correlation between ownership concentration and dynamic adjustment of capital structure.The higher the ownership concentration,the faster the dynamic capital structure adjustment,the better the effect.(2)The degree of equity balance is positively correlated with the dynamic adjustment of the capital structure.The higher the equity balance,the faster the dynamic adjustment of the capital structure,the better the adjustment effect.(3)When the nature of equity is distinguished,the adjustment speed of the capital structure of non-state-owned listed companies is faster than that of the state-owned listed companies,and the adjustment effect is better.