A Study on Dynamic Adjustment Behavior of Asset-Liability Ratio of Manufacturing Listed Companies in China

Liang Wang

doi:10.4028/www.scientific.net/AMR.468-471.471

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HomeAdvanced Materials ResearchAdvanced Materials Research Vols. 468-471A Study on Dynamic Adjustment Behavior of...

A Study on Dynamic Adjustment Behavior of Asset-Liability Ratio of Manufacturing Listed Companies in China

Abstract:

The paper studies on adjustment behavior of asset-liability ratio of manufacturing listed companies in China from a dynamic perspective. Based on the panel data from 2001 to 2008, this paper conducts system GMM methods to estimate. Results show that asset liquidity, non-debt tax shield, growth and net profit are negatively correlated with asset-liability ratio of China’s manufacturing listed companies, company size and asset structure are positively correlated with the asset-liability ratio, macroeconomic situation also has a significant impact on the asset-liability ratio; Companies can only make partial adjustment after deviating from optimal asset-liability ratio level because of the adjustment costs, the adjustment speed is about 0.345，the corresponding adjustment half-period is 2.01 years, the adjustment costs of asset-liability ratio of manufacturing listed companies in China are higher than that in the developed countries.

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Periodical:

Advanced Materials Research (Volumes 468-471)

Pages:

471-475

DOI:

https://doi.org/10.4028/www.scientific.net/AMR.468-471.471

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Online since:

February 2012

Authors:

Liang Wang

Keywords:

Adjustment Speed, Asset-Liability Ratio, Dynamic Adjustment, Manufacturing

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