Research On The Impact Of Executive Characteristics At Different Stages On The Speed Of Capital Structure Adjustment

In 2017,General Secretary Xi Jinping put forward the "three key battles" to build a well-off society in an all-round way,among which the prevention of financial risks ranked first: in view of financial risks,he put forward solutions to adjust the direction of fiscal expenditure and restrict illegal financing,and the "three key battles" and corresponding measures not only affected the debt ratio of some industries,but also resulted in the process of capital structure adjustment.It has had a great impact.Capital structure has always been the focus of enterprise decision-making,and relevant research has been the focus of attention of many scholars at home and abroad since MM theory was put forward.With the deepening of research,scholars in related fields have gradually introduced the concept of capital structure adjustment,that is,based on the existence of the optimal capital structure,to discuss how to quickly adjust the capital structure after the change.Because of the maximization of enterprise value under the optimal capital structure,how to adjust the capital structure to the state satisfying investors when enterprises need financing and how to adjust the optimal value when the capital structure deviates have become a major problem for enterprise managers to solve urgently.The purpose of this paper is to study the effect and mechanism of relevant factors,so as to provide reference for stakeholders in making decisions.Most of the existing studies focus on the impact of macro and micro factors on the adjustment speed.Even if some scholars add life cycle factors,they also study the explanatory variables such as enterprise performance and value,or only select one factor of the characteristics of senior managers.The research of this paper not only adds the role of life cycle regulation,but also selects a variety of variables for hypothesis analysis.This paper not only enriches the study of capital structure adjustment,but also makes a certain contribution to the study of enterprise life cycle.In the aspect of research model,the paper adjusts the original static research model and adds the research of dynamic adjustment.In the research process,the paper adopts a step-by-step research method: first,it analyses the influence mechanism of executive characteristics,and secondly,it adds the adjustment factor of enterprise life cycle.In terms of research methods,the paper strictly abides by the principle of empirical research,and uses SPSS software to make empirical analysis of relevant data from 2013 to 2017.New criteria have been added to the division of life cycle.The traditional method is to judge the direction of net cash flow of three kinds of activities:operation,investment and financing.In addition to net cash flow,financial indicators are added to the criteria used in this paper,which are judged according to the difference of netsales interest rate and dividend payout rate.Based on agency theory and signaling theory,this paper makes theoretical analysis and hypothesis.The background characteristics and personal characteristics of senior managers strengthen or weaken agency costs by transmitting negative or positive signals to the market.The impact intensity varies in different enterprise life cycles.Empirical analysis and validation are made on the data of listed companies on China's motherboard from 2013 to 2017.The data show that for the factors of executive tenure,the more experienced senior managers with longer tenure in growth and maturity are,the more timely deviation can be found and adjusted;in recession,the additional effect of experience brought by longer tenure is offset by negative market sentiment,and the pessimism of investors.Emotion weakens the ability of enterprises to obtain funds and restrains the speed of adjustment.As for the factors of the number of shareholdings held by senior managers at the end of the year,maturity and recession can improve the speed of capital structure adjustment by transmitting good signals of enterprise development,binding the interests of senior managers to enterprises,etc.In the growth period,agency costs increase greatly,the greater the power of senior managers,the easier it is to deviate from the interests of owners and form their own business empire,which is not conducive to capital structure adjustment.