The Empirical Research On The Relationship Between The Financing Structure And Peformance Of China's Listed Automanufacturer

The financing structure has an important link with operating performance and it also affect corporate governance and the stability of the capital market. Modern rational enterprises have gradually tended to take the capital management as the core, rather than production as in the past. As a listed company, improving the financing behavior has become a top priority. Currently, research about financing structure and company performance mainly focuses on the overall listed companies and lacks of attention on a separate industry. As a manufacturing power, China's manufacturing industry accounted for nearly half of listed companies.So the research into that has great value. To remove the main differences in the adverse effects of the business, this paper will study on automakers, analyse the status of their financing structure and to further examine the relationship between performance and financing structure.Based on 2008-2010 financial report of listed automanufacturers, the thesis selectes ten indicators from four aspects- profitability, operating capacity, solvency, development abilities.Then, it calculates the composite score to represent the performance with factor analysis.Via setting empirical models of general financing structure, internal debt structure and financing channel structure, the statistical analysis provides simulated data of those relationship . The results show that the capital structure and performance have an inverted "U" shape, various debt ratios negatively correlat with performance, internal financing ratio is positivly related. This article gives explaination quoting trade-off theory, pecking theory, agency theory and so on. Finally, it makes recommendations from macro and micro aspects to internal company and outside capital market. This theis expects to make reference for listed automakers to improve the financing structure and enhance the performance.