The dynamics of capital structure

Download This Article

This work is licensed under a Creative Commons Attribution 4.0 International License.

Abstact

The research explores the causality relationship between dividend distribution and capital structure among Chinese stock exchange-listed manufacturing firms. The research results confirm the pecking order theory and discover a non-linear U-shaped relationship between firm performances and dividend distributions. State-owned enterprises (SOEs) prefer more steady and regular dividends than private firms.

Keywords: Capital Structure, Management Power, Pecking Order Theory, Key Stakeholder Theory

JEL Classification: G30, G31, G32, G35

Received: 24.04.2023
Accepted: 03.05.2023

How to cite: Sheng, D., & Montgomery, H. A. (2023). The dynamics of capital structure. In M. Tutino, V. Santolamazza, & A. Kostyuk (Eds.), New outlooks for the scholarly research in corporate governance (pp. 90–95). Virtus Interpress. https://doi.org/10.22495/nosrcgp17