Research On The Impact Of Comparability Of Accounting Information On The Dynamic Adjustment Of Enterprise Capital Structure

In recent years,with the continuous development of China’s capital market,the financing costs and operating environment of enterprises have undergone tremendous changes.A reasonable capital structure can help enterprises improve their operating environment and reduce financing costs.Therefore,how to adjust the capital structure to an ideal goal has become a practical issue that enterprises pay attention to and urgently need to solve.The comparability of accounting information reflects the processing ability and disclosure level of enterprise accounting information systems.High quality comparability of accounting information can reduce enterprise information asymmetry and agency costs,improve external regulatory efficiency,and then accelerate the dynamic adjustment of enterprise capital.The improvement of the comparability of enterprise accounting information plays an important role in its management’s investment decisions and external stakeholders.There is little in-depth analysis of the relationship between the comparability of accounting information and the dynamic adjustment of capital structure in the existing literature.Although some literature studies the relationship between the comparability of accounting information and enterprise financing,it does not involve changes in the leverage ratio of enterprises,No specific analysis has been made on how to affect the speed of capital structure adjustment.Therefore,this article will conduct research on the dynamic adjustment of capital structure of listed companies in China based on the perspective of comparability of accounting information.Firstly,it combs the relevant literature on comparability of accounting information and dynamic adjustment of capital structure,establishing the theoretical basis of this article.Secondly,based on the proposed theory,the theoretical mechanism of this article is clarified,and a corporate capital structure model and comparable indicators are constructed.Finally,this article uses the data of Chinese A-share listed companies in Shanghai and Shenzhen from 2005 to2019 as a sample to empirically test whether comparability will accelerate the adjustment of corporate capital structure,and further investigate the adjustment methods and impact channels,as well as the asymmetric and heterogeneous impact of accounting information comparability on the adjustment speed;In addition,this article further explores the channel effects of information asymmetry and agency costs.Finally,to ensure the robustness of the results,this article further tests the hypothesis by using endogenous control,introducing capital structure deviation,replacing accounting information comparability indicators,and using different models to estimate the optimal capital structure model,and using OLS and panel FE models to estimate the optimal capital results,respectively.The research finds that:(1)The increase in the comparability of accounting information will accelerate the adjustment speed of enterprise capital structure,and accelerate the upward and downward adjustment of capital structure.(2)The upward adjustment of the capital structure is mainly achieved by increasing the debt path,while the downward adjustment is achieved by reducing debt and increasing equity financing.(3)Channel analysis shows that this positive impact is mainly achieved by reducing enterprise information asymmetry and agency costs,as well as improving the external regulatory efficiency of investors.(4)Comparability of accounting information has an asymmetric impact on the speed of capital structure adjustment,with downward adjustment faster than upward adjustment.(5)The improvement of comparability has a heterogeneous impact on different enterprise sizes,which will significantly increase the speed of capital structure adjustment for small enterprises,but has no significant impact on large enterprises;It has a heterogeneous impact on different ownership properties,which can improve the speed of capital structure adjustment of state-owned and non-state owned enterprises,and non-state owned enterprises adjust faster than state-owned enterprises.Therefore,improving comparability is an important dimension for improving information quality,which is of great significance for improving the capital structure of enterprises,enhancing governance levels,and improving the efficiency of resource allocation.This article proposes policy recommendations based on the perspectives of enterprises,external stakeholders,and policymakers.In order to better develop the capital market,it is necessary to further improve the accounting standards for enterprises,provide standards for the selection of accounting methods for enterprises,strengthen supervision of various accounting standards for enterprises,enhance the comparability of information,reduce the level of information asymmetry in the market,improve the investment efficiency of investors,and enhance the resource allocation ability of the market.