Empirical Research On Relationship Between Capital Structure And Corporate Performance Based On Yangtze River Delta SME Board

Studying the relation between capital structure and enterprise performance has agreat academic meaning not only for its theoretical value but also for its practicalvalue．As early as1950s, the foreign academic community started to investigate therelation between capital structure and enterprise performance．The most importanttheory is definitely MM theory that lay the foundation for the theory of moderncapital structure．After that by extending the assumed conditions of MM theory andbasing on different perspectives，scholars proposed many of new theory models oncapital structure．Although researches on theory of capital structure display a state ofa hundred flowers blooming，a hundred schools of thought contending，no one oftheories gives the satisfactory and unambiguous relation between capital structureand enterprise performance until now．In addition，most of researches are focused onthe main-board companies but seldom for small and medium-sizedenterprises．Therefore, the empirical research on the correlation between capitalstructure and enterprise performance of small and medium-sized enterprises shouldbe of important value in theory and reality．This dissertation takes114listed companies on the small and medium-sizedenterprises (SMEs) board as research samples which are located in Yangtze RiverDelta region, and constructs7theory model concerning ownership structure，debtstructure and corporate performance to explore the effective paths and tactics toobtain the optical capital structure for listed companies on the SMEs board．Based onthe above objects, the first part of dissertation introduces and discusses classictheories on capital structure and corporate performance．After that, the dissertationpresents domestic and foreign relevant literatures about the relation between capitalstructure and enterprise performance, highlighting the thought framework forbuilding the model and the difference in the reported conclusions in literature．Thesecond part involves in the analysis of the status quo of capital structure and enterprise performance of research samples based on results of descriptive statisticalanalysis．The third part is empirical research using SPSS19.0statistical software,which is composed of major two steps：the first step is correlation test between theselected independent variables and dependent variables；The second step is linearregression analysis of the data of the sample enterprises according to the establishedequations to explore the specific interrelationship between capital structure andenterprise performance．The following conclusions are concluded in the dissertation.A negative correlation exists between enterprise performance and capital structure ofthe sample companies．There is no remarkable correlativity between short-termasset-liability ratio and net assets income ratio．In comparison of asset-liability ratio,the largest shareholding ratio (being representative of ownership structure index)shows less correlativity with net assets income ratio．Lastly, according to the analyses of descriptive statistic and linear regressionthis dissertation proposes several policy suggestions for existing problems of listedcompanies on SMEs board with the expectation to offer reference for optimizingtheir capital structure．...