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

摘要

The paper studies on adjustment conduct of China's manufacturing listed enterprises' debt ratio from a dynamic perspective, and uses system GMM method to estimate focuses on 336 China's manufacturing listed enterprises' dynamic panel data from 2002 to 2008. Results show that China's 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.