Abstract: Based on panel data of Chinese listed companies in A-shared market from 2010 to 2017, the relationships among managerial equity incentive, analysts coverage and capital structure dynamic adjustment are empirically tested by using multiple regression analysis. It is found that managerial equity incentive and analysts coverage have effectively promoted the adjustment of corporate capital structure; when the direction of adjustment is downward, the effect is much more significant; furthermore, the results show that the more the coverage of analysts, the greater the impact of equity incentive on the dynamic adjustment of capital structure. The combination of internal incentive and external supervision towards enterprises deepens the research on the dynamic adjustment of capital structure, which provides a new perspective for further research, and establishes theoretical foundation for formulating incentive and supervisory schemes to executives.

Key words:  managerial equity incentive, analysts coverage, capital structure adjustment, adjustment costs