Empirical Study Of The Effect Of Hebei Province's List Companies' Capital Structure On Enterprise Performence

Capital structure, as the source of enterprise capital structure or equity financing structure,embodies and reflects the balance between the interests of corporate investors, managers , creditors and other relevant interest groups, affects and determines the corporate governance structure, corporate behavior characteristics and corporate value in many aspects. Reasonable capital structure has very important practical significance for strengthening the internal management, standardizing the business operations, optimizing the allocation of enterprise resources, and improving the enterprise value.Domestic and foreign scholars have made a great deal of theoretical and empirical research on the relationship between the capital structure and firm performance, and obtained two contrary views: a positive and a negative correlation. Therefore, under different research background, to find reasonable relationships between the capital structure and the corporate performance has a depth value.The thesis makes empirical studies on the relationship betweent the capital structure of listed companies and the corporate performance in Hebei Province. The thesis chooses 28 companies in Hebei province listed on the Shanghai and Shenzhen as the object of study, collects and analyses the indicator values of business performance and capital structure which listed in companies'financial reports. By using Principal component analysis of 28 listed companies in Hebei Province, the thesis extracts the financial condition, assets, operating performance, solvency and development capacity of 20 quantitative indicators of data, gets the greatest contribution of factors which reflect the merger to achieve comprehensive corporate performance indicators. And these indicators are interpreted as a comprehensive indicator variables, the indicators reflecting the capital structure are used as explanatory variables. By using regression analysis, the thesis studies the relationship between business performance and capital structure. The results can be seen from the analysis, corporate performance and capital structure have a clear correlation. Just as the theory of net earning predicted, the proportion of debt financing of enterprises and the business performance have positive correlation, that is, if the asset-liability ratio is not more than 100% , the higher the rate of corporate assets and liabilities, the higher the level of their performance. This thesis, by studying the relationship between the capital structure of listed companies in Hebei Province and corporate performance, indicates that the capital structure of Listed Companies exist many unreasonable problems: existing assets and liabilities are in the low rate, long-term debt ratio is low, current liabilities are too high, capital structure is irrational. At last, the thesis made countermeasures on how to rationalize the capital structure and raise the level of business performance.