The Impact Of Equity Nature On Financing Structure

At present,the global economy is in the recovery stage after the epidemic,and the risk-free interest rate remains high.In addition,China is in the economic New Normal stage,and financing is difficult and expensive in all walks of life.How to play the multi factor synergy of financing structure and improve the efficiency of enterprise financing structure adjustment is worth exploring.Due to the dual nature of China’s financial resource supply,emerging industries and small and micro enterprises,as new economic drivers,find it difficult to meet their funding needs through external financing.According to the pecking order financing theory,companies may only consider external financing when endogenous financing is insufficient to cover their funding needs.However,there is a phenomenon of anti optimal financing theory in China,mainly manifested in the preference of most domestic enterprises to issue new shares for financing.Although the establishment of a multi-level capital market has lowered the threshold for equity financing for small and micro enterprises,there are still high implicit financing costs,and the lack of market liquidity has also deterred small and micro enterprises.In this era,research is conducted on the financing structure of listed companies of various sizes in the manufacturing industry(specifically referring to the working capital structure in this article),the speed of financing structure adjustment(specifically referring to the speed of working capital structure adjustment in this article),and the differences in adjustment capabilities among companies.The aim is to analyze methods to improve the efficiency of financing structure adjustment from the perspective of equity nature,and to solve the problem of insufficient speed of financing structure adjustment for the capital market.Therefore,this article first uses the financial data of A-share manufacturing listed companies in Shanghai and Shenzhen from 2007 to 2021,and adopts the approach of Zhenjie W and Zhuquan W(2013)to construct the Working Capital Structure Index(LCR).Furthermore,based on the inverted U-shaped relationship between working capital and corporate performance,the optimal working capital structure LCR*is calculated,and the adjustment speed of the company’s anchoring LCR*is ultimately obtained λ In the empirical testing section,this article found through GMM testing the speed at which Chinese manufacturing enterprises dynamically adjust their working capital financing structure(λ).Mainly affected by the company’s equity structure.Specifically,companies with high equity concentration ratio and small management shareholding ratio λ The higher the level,the more consistent this conclusion is with the hypothesis of the dual principal-agent theory;Based on practical considerations,this article further studies and finds that under high financing constraints,equity structure has an impact on λ.The impact is more significant.In addition,this article also examines the impact of property rights on China’s national conditions λ The impact of the discovery of state-owned enterprises λ Higher,especially when financing constraints are relatively strong,the speed advantage of adjusting financing structure is more obvious,verifying that state-owned enterprises enjoy financing advantages more than non-state-owned enterprises.Finally,this paper also delayed the treatment of the explained variable for one period to weaken the endogenous problem.Through GMM test,no over identification problem was found,and further robustness test was conducted,and the conclusion is still valid.Under the multiple backgrounds of "Made in China 2025 Vision",this paper focuses on the financing structure,considers the motivation of enterprises to adjust the financing structure in the imperfect capital market,studies the impact of different equity nature indicators on the financing structure,and enriches the research perspective in this area.We also focused on the manufacturing industry as the research subject,considering the differences in property rights and the role of financing constraints,further enriching the research on the mechanism of the impact of equity nature on financing structure.