Market Competition and Dynamic Adjustment of Capital Structure

Based on Bank of China's 12 panels data and the use of nonstationary panels and dynamic adjustment method, the optimal capital structure of banks and dynamic adjustment carried out. Panel cointegration test shows that listed banks in a dynamic optimal capital structure, taking into account competition in the market remains the case. Empirical found that the level of debt competition in the market, R&D capability and capacity of existing capacity and capital structure and the capital structure of the gap between the target capital structure dynamic adjustment is an important influencing factors, there are significant positive correlation between. The study listed banks in China to provide a solid empirical basis, the reality of diversity an important stake in the bank has important significance.