Study On Institutional Environment,Supply Chain Relationship Capital And Capital Structure

As the study on "puzzle of capital structure" develops,many scholars are no longer confined to financial stakeholders like shareholders and creditors,but are becoming study from the perspective of diversification and comprehensive analysis.Business practice has made scholars start to aware of the importance of relationship capital in the new diversified capital structure,although there are some research studying the relationship capital with government or banks,only a few scholars have begun to pay attention to the potential unique perspective of supply chain.As an important part of relationship capital,supply chain partnership plays a vital role in the process of maintaining competitive advantage and acquiring external resources.Since the 21 st century,the national support for high-tech enterprises continue to increase,domestic and foreign scholars began to study Capital structure of high-tech companies.There are many differences between high-tech enterprises and other enterprises,high-tech enterprises have long R&D time and their products need to be innovated and replaced all the time,which urge them to find a developing breakthrough with facing market changing.With knowledge economy developing rapidly,in order to get more scarce resources and competitive edge,high-tech companies are no longer confined to the traditional competition of resources;the diversification and complication of economic activities make their competitions turn to relational transaction.Relational transaction is what bases on those invisible things like trust or promise,relatives to the past or future transactions,obtains competition advantages which are hard copied or imitated by good relationship or exchange of resources with supply chain partners,acquires benefits like relationship rents,which can not only enhance both operational performance and innovation performance but also help to improve the performance of supply chain alliance.So high-tech enterprises began to attach importance to the rational establishment of relationship capital,with particular emphasis on business and supply chain partners exist between implicit contracts.However,there are a few references that using high-tech enterprises as samples studying the specific influence factors of capital structure.Though there are some scholars studying intellectual capital such as human capital,structural capital,the elaboration of the relationship capital are manly studying manager relations,corporate social capital and so on,with ignoring the potential relationship capital existed in the supply chain.Specific to the fields of the relationship capital,scholars prefer to study the impacts on corporate finance decision-making brought by the political relations and the relationship between banks and enterprises.In spite of some references are referring to supply chain relationship capital now,the studies about the impacts on capital structure was not too many,nor the empirical test.This paper put supply chain relationship capital into the capital structure theory,which is one of the innovations of this paper.At the same time,high-tech listed companies belongs to new industries,it is still developing.Under different institutional environment,the influence of the establishment of relationship capital on financial decision-making of enterprises is also affected,which is another innovation of this paper.Therefore,this paper use data of high-tech listed companies in Shanghai and Shenzhen in 2010-2014 to study the relationship between supply chain relationship capital and capital structure.Supply chain relationship capital is described as two dimensions of partnership trust and relationship commitment,which are measured by commercial credit and product uniqueness respectively.We make an incomplete information dynamic game model of the customer and the supplier,regarding the capital structure as a kind of incentive means,the higher asset-liability ratio enterprises has,the higher risk that nonperformance happened after the event enterprises has,which takes a higher cost of transfer to stakeholders,restrains the cooperation bases on trust,so that the supply chain relationship capital is hard to build up.Even if the business does not liquidate,it may be considered easy to fail into financial distress,thus affecting the realization of hidden contracts,therefore,supply chain stakeholders are not willing to do business with them.This paper further discusses it under different legal environment and under different regional credit environment.The results show that the asset-liability ratio of high-tech listed companies is negatively correlated with supply chain relationship capital.In the condition of good legal environment,the negative correlation between capital and capital structure is weaker,and in the area with good credit,the negative correlation between supply chain relationship capital and capital structure is weaker too.Therefore,this paper put forwards some theory suggestions like strengthen respects to the supply chain partners when making financial decisions,and also focus on their own behavior management.And the same time,this paper gives some policy recommendations like speed up the pace of legal system construction and improve the education level so as to form a good social norms.This paper includes six parts: the first part introduces the background and motives of this research,research methods of this paper,and clarifies the innovation points and main defects.The second part describes the current research literatures including the definition and elements of supply chain relationship capital and its economic consequences,the influencing factors of capital structure and institutional environment.The third part defines the related concepts like supply chain relationship capital,institutional environment,influencing factors of capital structure(company characteristic factors,industry factors,macro-economy factors),and introduces the related theories with concentration on “Signaling Theory”,“Implicit Contract Theory” and “The Dynamic Game Theory”.The fourth part is the theoretical analysis,study the relationship the supply chain relationship capital and capital structure by building a game model,and then analyses the changes in the different institutional environment.The fifth part is the empirical analysis,using systematic GMM regression analysis to test hypothesis.The sixth part puts forward several suggestions on the related research conclusions.And combines with the defects of this paper,it also prospects the further study of the related fields in the future.