The Empirical Research On The Capital Structure Of Machinery Manufacturing Industry’s Listed Companies And Corporate Performance In China

With the MM theorem proposed, capital structure has became one of the most important issues of modern financial management. The issue of the relationship between capital structure and corporate performance is also the most important topic. Therefore, capital structure is not only related to the company’s governance structure and firm characteristics, but also affects corporate performance, thus, also affect an industry and even the development of a country’s economic. Optimization of capital structure can improve the corporate governance structure, competitiveness and allocation of resources. Thus, it has a very significant role in improving company performance.Currently, western scholars study more fully about the relationship between capital structure and corporate performance, however, due to China’s securities market not better than developed countries, the listed companies are different of that of developed countries. Therefore, studing on the relationship of them could not directly follow the conclusion of developed countries. The article of machinery manufacturing industry is nearly none. The manufacturing industry is the dominant industry, and machinery manufacturing industry is the indispensable part of the manufacturing industry, and play the important role in the healthy development of China’s capital market. So, the comprehensive analysis of the relationship between capital structure and company performance about this industry is essential.This paper includes the following five major parts:The first part includes the research background, theoretical and practical significance, and describing the research methods to study,the structure of this article, as well as innovation of this paperThe second part describes the theorise of capital structure, including theory of capital structure under a variety of factors and relevant literature reviewed, the purpose is to provide a theoretical basis for the later hypotheses. The third part is about present situation of manufacturing industry’s capital structure. Firstly, summarized analysis, and then specified analysis.The fourth part is empirical analysis, including raising research hypotheses, selecting the sample and determining the variables. Then, use descriptive statistics to describe variables. Finally, according to the foregoing description, the data is gone into the model regression.The fifth part is conclusions and recommendations. First, list the results. Then, raise relevant proposals about how to optimize the machinery manufacturing industry’capital structure. Finally, sum up the inadequacies of this article, as well as the recommendations for further study.This paper studies the relationship between the capital structure and corporate performance about the listed company in China machinery industry by using theoretical analysis and empirical analysis, qualitative analysis and quantitative analysis.The results show as follows:(a) the influencing factors of corporate performance are complicated;(b) asset-liability ratio has negative correlation with corporate performance markedly;(c) the connection between the ratios of current liabilities and corporate performance is positive;(d) the ratios of state-owned shares has negative correlation with corporate performance;(e) the connection between the ratios of floating stock and corporate performance is difficult to find;(f) the connection between concentration of ownership structure and corporate performance is difficult to find;(g) size and development of the company have positive correlation with corporate performance markedly;(h) analysis results by financial indicators and market indicators are mostly different.The main innovation of this paper includes choosing China machinery industry as object, selecting the latest data, and adding a new variable indicator.