Abstract
The paper studies on adjustment behavior of asset-liability ratio of manufacturing listed companies in China from a dynamic perspective. Based on the panel data from 2001 to 2008, this paper conducts system GMM methods to estimate. Results show that asset liquidity, non-debt tax shield, growth and net profit are negatively correlated with asset-liability ratio of China’s manufacturing listed companies, company size and asset structure are positively correlated with the asset-liability ratio, macroeconomic situation also has a significant impact on the asset-liability ratio; Companies can only make partial adjustment after deviating from optimal asset-liability ratio level because of the adjustment costs, the adjustment speed is about 0.345，the corresponding adjustment half-period is 2.01 years, the adjustment costs of asset-liability ratio of manufacturing listed companies in China are higher than that in the developed countries.
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