The Analysis Of The Relationship Of China’s Automobile Manufacturing Listed Company’s Capital Structure And The Enterprise Performance

The capital structure issue is a focus of study these years. The research has importantsignificance in theory and practice. Capital structure is directly related to the financial standingof the enterprise, the tax status and agent cost. It will not only directly affect the enterprise’s costof capital and governance structure, but also be with the overall performance of the enterpriseclosely, even the capital structure is reasonable or not in the macroeconomic impact of a countryor region’s overall economic growth and stability. Therefore, the optimized capital structure ofthe enterprise is not only directly related to enhance the listed company’s overall quality andinvestment value, and it also plays a very important role to enhance the confidence of investorsand promote the healthy development of the securities market.On the basis of the relationship between capital structure and corporate performance, thepaper uses the Panel data model, combines with previous research experience, does an empiricalresearch and analysis with the data in nearly three years of20auto manufacturing listedcompanies on the Shanghai and Shenzhen stock markets.The results suggest that the net capitalgains rates, which is the measurable indicators of corporate performance, and the Asset-liabilityratio, largest shareholder stake, circulating-stock ratios and the size of company, which is themeasurable indicators of capital structure are positive correlation; and the measurable indicatorsof corporate performance and the short term debt to total assets ratio renders are negativecorrelation.