2026-10-13T02:25:24Z https://api.figshare.com/v2/oai

oai:figshare.com:article/33725818 2026-09-14T10:07:26Z category_26056 category_26053 item_type_3 month_year_09_2026

Financial eco-environment, financial resource allocation efficiency, and dynamic capital structure adjustment: Evidence from China jinhui Zhang (24872737) Ecological economics Comparative economic systems Financial eco-environment Dynamic capital structure adjustment Financial resource allocation efficiency Credit resource allocation Dynamic threshold effect <p dir="ltr">This study examines how the financial eco-environment affects firms’ dynamic capital structure adjustment and the underlying mechanisms through the lenses of dynamic trade-off theory and financial resource allocation. The results show that, first, an improved financial eco-environment significantly strengthens firms’ adjustment responses to deviations from their target capital structures and accelerates convergence towards target levels. As the financial eco-environment increases from the 25th to the 75th percentile, the time required for firms to eliminate half of an existing target deviation declines from approximately 1.68 years to 1.25 years. Second, this effect is concentrated primarily in upward adjustments among firms whose actual leverage is below the target level. In contrast, the effect on downward adjustments does not reach conventional levels of statistical significance. The effect is also more pronounced among firms with greater external financing dependence and among non-state-owned enterprises, although the ownership-group difference is only marginally significant at the 10% level. Third, an improved financial eco-environment is associated with better alignment between firm productivity and debt financing costs, thereby reducing frictions in capital structure adjustment. Regional-level extensions further indicate that credit resource allocation efficiency and savings-to-investment conversion constitute important transmission channels. Fourth, the effect exhibits clear state dependence: firms’ adjustment responses strengthen significantly once the financial eco-environment crosses a certain threshold. The effect also tends to be stronger under relatively accommodative monetary policy conditions. However, the evidence is somewhat sensitive to the treatment of time trends and to inference with a small number of time clusters.</p> 2026-09-14T10:07:26Z Dataset Dataset 10.6084/m9.figshare.33725818.v1 https://figshare.com/articles/dataset/Financial_eco-environment_financial_resource_allocation_efficiency_and_dynamic_capital_structure_adjustment_Evidence_from_China/33725818 CC BY 4.0