Abstract: Taking China’s A-share listed companies from 2007 to 2017 as research objects, this paper constructs the index of group brand strategy and investigates the relationship between group brand strategy and capital structure’s dynamic adjustment. The finding shows that the diversified group brand strategy can help enterprises to speed up the dynamic adjustment of capital structure, which is mainly manifested in the improvement of the speed of upwards adjustment of capital structure. The result of the test of the acting path shows that the diversified group brand strategy has significantly reduced the cost of debt capital. The result of further heterogeneity test shows that among the enterprises of non-state owned or with poor information environment, the impact of group brand strategy is more significant. Therefore, when carrying out the adjustment of capital structure, enterprises should consider the impact of group brand strategy on the dynamic adjustment of capital structure by referring to the characteristics of them.

Key words: group brand strategy, capital structure, dynamic adjustment