Perceived Uncertainty and Capital Structure: An Empirical Study Based on Chinese-Listed Companies

Abstract

Against the backdrop of frequent uncertainty shocks, it is imperative to explore the impact of perceived uncertainty on the important corporate characteristic of capital structure. Therefore, this study conducts theoretical analysis and empirical tests on the relationship between perceived uncertainty and corporate capital structure using panel data of Chinese listed companies from 2008 to 2018. The estimation results of the relevant regression models indicate that perceived uncertainty significantly negatively affects corporate capital structure (leverage). Furthermore, this finding is more pronounced in non-state-owned enterprise samples. These findings have certain implications for enterprises in coping with uncertainty and promoting the optimization of corporate capital structure.