The Empirical Study On The Relationship Between The Debt Financing And The Performance Of The Listed Companies

The comprehensive treatment of debt financing has long been a focus for concern of the scholastic circles. How to select the optimal debt financing and gain the best corporate performance is the enterprises and economists most care. With Chinese special economic structure, there may be significant difference in the property right structure and debt financing between private companies and state-controlled companies. It is important for the development of listed companies and the improvement of corporate performance to study the relationship between debt financing and corporate performance.The domestic scholars often put the whole listed companies or the private listed companies as the research objects when they study the relationship between debt financing and corporate performance. Study this relationship from the perspective of the private listed companies and the state-controlled listed companies is rarely used. A single performance index is mainly used when the scholars weigh performance, while factor analysis is not used widely. This paper describes the debt financing and corporate performance between the private listed companies and the state-controlled listed companies based on the analysis of related basic theories and current literature, and then study the relationship of debt financing and corporate performance between the private listed companies and the state-controlled listed companies through the factor analysis and regression analysis. Its purpose is to reveal the inner link of this position. In this paper, we choose the listed companies from 2008 to 2010 as the sample data, factor analysis derived from the evaluation of performance index as the explanatory variables, asset-liability ratio, short-term debt ratio, long-term debt ratio, short-term debt ratio with interest, long-term debt ratio at interest as explanatory variables, scale of the corporation, growth of the corporation, and the scale of the board of director as the control variables, describe analysis from the different years and different industries, and then remove the diversity of the industries, conduct a linear regression from the whole term, term-structure and interest-structure of debt financing to demonstrate the relationship of between debt financing and corporate performance .We get the following conclusions after the situation analysis and empirical research: First, Chinese listed companies in financial structure and performance negatively correlated, that is, the financial structure of our listed companies is unreasonable; Second, no matter in the private listed companies or the state-controlled listed companies, there is significantly negative correlation between current liabilities ratio and corporate performance, so as the long-term liabilities ratio and corporate performance; Thirdly, there is also negative correlation between current liabilities with interest and corporate performance from the private listed companies and the state-controlled listed companies, so as the long-term liabilities with interest and corporate performance.