Money Supply and the Dynamic Adjustment Speed of Capital Structure —Based on Unbalanced Panel Data in China

DOI

10.2991/icpel-18.2018.110How to use a DOI?

Keywords

Capital structure, Money supply, The dynamic adjustment speed

Abstract

Over the past years, capital structure has been one of the most important subjects in financial management. Our study aims to study the influence of macro factors on the dynamic adjustment speed of capital structure over the period of 2000 to 2015. Considering the traits of debt, this article classifies the capital structure into four categories, and then we develop a dynamic capital structure model to measure the adjustment speed of different kinds of capital structure and the effects of money supply. The results found that:(1) Different kinds of capital structure have different dynamic adjustment speed, the adjustment speed of the short-term capital structure is more sensitive than the adjustment speed of long-term capital structure; (2) Money supply will affect the adjustment speed significantly, loose monetary supply will speed up the adjustment;(3) Determinants of firm-specific will have influence on the capital structure.

Copyright

© 2018, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Wenju Kong
AU  - Qinfeng Xu
PY  - 2018/10
DA  - 2018/10
TI  - Money Supply and the Dynamic Adjustment Speed of Capital Structure —Based on Unbalanced Panel Data in China
BT  - Proceedings of the 2018 3rd International Conference on Politics, Economics and Law (ICPEL 2018)
PB  - Atlantis Press
SP  - 473
EP  - 475
SN  - 2352-5398
UR  - https://doi.org/10.2991/icpel-18.2018.110
DO  - 10.2991/icpel-18.2018.110
ID  - Kong2018/10
ER  -