The Correlation Study On Capital Structure And Performance Of Listed Companies In Heilongjiang Province

One of the oldest and most important issues in corporate financing is what kind of interacting relationship exists between capital structure and corporate performance. Many economists have raised different capital structure theories from different angles. Until now, there is no unique conclusion. Therefore, the aim of studying the capital structure is to provide theoretical explanations and predictions for the conflict of interest and interactive mechanism of those stakeholders who have contract relationship with each other, as well as the relationship between the conflict and corporate performance. In addition, it provides theoretical guidance for optimizing capital structure and improving company's administration structure in practice. This dissertation is divided into five chapters:Chapter 1, Introduction. This chapter focuses on introducing the theoretical and practical background of the research. After briefly describing the development of capital structure theory and current situation of Chinese Stock Market, the main researched problem is raised. It also points out the creative points and research methods on empirical study.Chapter 2 , Theoretical Review of Capital Structure and Corporate Performance. This chapter mainly introduces the classical capital structure theory, such as Net Income Theory, Net Operation Income Theory and Traditional Compromise Theory. It also includes a new classic capital structure Theory, which is MM theorem, Miller Model and trade-off theory; finally, a modern capital structure theory is introduced by including a new Pecking Order Theory of Finance, Agency Cost Theory, and Signal Model.Chapter 3, Analysis. This chapter discusses capital structure and current corporate performance of listed companies in Heilongjiang province. Firstly, it introduces the characteristics of capital structure and analyses the factors of producing them. Secondly, it analyses the operation performance from three aspects: profitability, repayment and development ability. Finally, it concludes that the corporate operation performance of the listed companies in Heilongjiang belongs to a downstream level of the country's list.Chapter 4, Empirical Analysis. By establishing a simultaneous equation model with financial data of listed companies in Heilongjiang province of recent years, and performing regression analyses with Least Squares Regression, this chapter points out a conclusion that there is a negative correlation between capital structure and corporate performance.Chapter 5, Countermeasures and Suggestions. This chapter proposes some advices for perfecting capital structure and improving corporate performance. It includes two aspects: internal advice of corporate and advice of market operation environment. These advices could help the listed companies optimize their capital structure and improve corporate performance.