The Dynamic Adjustment of China's Manufacturing Listed EnterprisesDebt Ratio - A Study Based on System GMM Estimation

Lei Zhang; Bang Yuan Wu; Liang Wang

doi:10.4028/www.scientific.net/AMR.694-697.3535

Paper Titles

Optimization Design for Size of Footwear Outer Packaging Boxes
p.3516

SNA Based Expert Knowledge Map Design for Ship-Block Scheduling Decision-Making
p.3522

Application of Multi-Objective Culture Particle Swarm Optimization in Complex Product Assembly Line Balancing
p.3526

Study on Cluster Model of Appliance Industry in Qingdao
p.3531

The Dynamic Adjustment of China's Manufacturing Listed EnterprisesDebt Ratio - A Study Based on System GMM Estimation
p.3535

A Quantitative Model for Safety Evaluation of Food Supply Chain Based on CAS
p.3540

Analysis of Development of Supply Chain in New Materials Industry
p.3545

A Study on Competitiveness Evaluation of Cloud Outsourcing Vendor
p.3549

Optimization Model Based on the Fractal Theory in Supply Chain Management
p.3554

HomeAdvanced Materials ResearchAdvanced Materials Research Vols. 694-697The Dynamic Adjustment of China's Manufacturing...

The Dynamic Adjustment of China's Manufacturing Listed EnterprisesDebt Ratio - A Study Based on System GMM Estimation

Abstract:

The paper studies on adjustment conduct of Chinas manufacturing listed enterprises debt ratio from a dynamic perspective,and uses system GMM method to estimate focuses on 336 Chinas manufacturing listed enterprises dynamic panel data from 2002 to 2008. Results show that Chinas manufacturing listed enterprises have strong rationality and objective optimal debt ratio level. Companies can only make partial adjustment after deviating from optimal debt ratio level because of the adjustment costs,the adjustment speed is about 0.12,the corresponding adjustment half-period is 3.15 years,which is consistent with the traditional static trade-off theory.

You might also be interested in these eBooks

View Preview

Info:

Periodical:

Advanced Materials Research (Volumes 694-697)

Pages:

3535-3539

DOI:

https://doi.org/10.4028/www.scientific.net/AMR.694-697.3535

Citation:

Cite this paper

Online since:

May 2013

Authors:

Lei Zhang, Bang Yuan Wu, Liang Wang

Keywords:

Debt Ratio, Dynamic Adjustment, Manufacturing, System GMM Estimation

Export:

RIS, BibTeX

Price:

Permissions CCC:

Request Permissions

Permissions PLS:

Request Permissions

Сopyright:

Citation:

References

[1] Arellano，M. and Bond，S. Some Tests of Specification for Panel Data: Monte Carlo Evidence and an Application to Employment Equations. Review of Economic Studies，58(1991)，pp.277-297

DOI: 10.2307/2297968

Google Scholar

[2] Bar - Ilan，A.；Perry，D. and Stadje，W. A Generalized Impulse Control Model of Cash Management. Journal of Economic Dynamics and Control，28(2004)，pp.1013-1033

DOI: 10.1016/s0165-1889(03)00064-2

Google Scholar

[3] Bond，S. and Windmeijer，F. Finite Sample Inference for GMM Estimators in Linear Panel Data Models. London Institute for Fiscal Studies working paper series No. CWP04 /02，(2002)

DOI: 10.1920/wp.cem.2002.0402

Google Scholar

[4] Dangl，T，and J. Zechner，Credit risk and dynamic capital structure choice. Journal of Financial Intermediation， 2004，13，pp.183-204

DOI: 10.1016/s1042-9573(03)00057-3

Google Scholar

[5] Han，S. J. and Qiu，J. P. Corporate Precautionary Cash Holdings. Journal of Corporate Finance，13(2007)，pp.43-57

DOI: 10.1016/j.jcorpfin.2006.05.002

Google Scholar

[6] Hovakimian，A.，T. Opler，and S. Titman. The debt-equity choice. Journal of Financial and Quantitative Analysis，36(2007)，pp.1-24

DOI: 10.2307/2676195

Google Scholar

[7] Nivorozhkin，E.，The dynamics of capital structure in transition economies. Economics of Planning， 2004， 37，pp.25-45

DOI: 10.1007/s10644-004-1056-2

Google Scholar