| Capital structure problem has always been a hot topic in theory and practice research. The core problem of capital structure is how to match the proportion of debt capital and equity capital. Capital structure has important effects on the enterprise value. On the one hand, capital structure is on behalf of the rights and obligations of the creditors and shareholders, what’s more, the role and status of creditors and shareholders in corporate governance is different, Therefore enterprise’s capital structure will affect the economic main body’s behavior characteristic, then affect the corporate governance structure, In the end, It will influence the company performance and market value. in a manner of speaking, a reasonable capital structure is the foundation of effective governance. On the other hand, the proportion debt capital and equity capital can affect the enterprise’s weighted average cost of capital. So enterprises must find a capital structure that makes weighted average cost of capital to be minimum. Only in this way, the enterprise is likely to realize the goal of maximizing corporate market value.It is worth instructing that capital structure can affect corporate performance existing three prerequisites. First of all, financial markets must be highly developed and enterprises are free to choose the financing way; Secondly, Competition mechanism is not only perfect but also mature; Last but not the least, Bankruptcy mechanism is sound. However, China is a transformation country, in the process of transformation, China make great achievements of reform, but we should pay attention to the shortcomings of the reform. Under the current marketed economic system, State-owned enterprises and private enterprises in our country’s competitive position is unequal, social resources tend to state-owned enterprises, and private enterprises although grow in narrow gap. Therefore by doing research on the correlation of capital structure and corporate performance of private enterprises, the results of this studying provide government agencies with reference when government agencies set up rules, regulations and laws, such as improving the market mechanism, developing capital market and improving the legal system (especially the bankruptcy legal system).Modern capital structure theory develops from the MM theorem to the theory of capital structure under the framework of incomplete contract, forming many theories, and different theories study capital structure problem from a particular angle of view. So of course, its research results are also different. But there is no doubt that every genre admit that the capital structure affects enterprise value, and the existence of the optimal capital structure. All theories, however, fail to reach a unified conclusion about what is the optimal capital structure and how to determine the optimal capital structure. So the capital structure problem attractes the great interest from the theoretical and practical circles, becoming a topic of concern. Therefore, scholars both at home and abroad do a large number of empirical studies on it. By accessing to the existing mature capital structure theory and empirical research by scholars both at home and abroad, This article find that when they study the correlation of capital structure and corporate performance, in regard to the corporate performance indicators selection, using a single performance indicators. This kind of method cannot comprehensively, authenticly, objectively reflect the company’s actual performance. Thus this paper overcomes the defect of predecessors on index selection, adopting the multi-index evaluation method. Besides, throughout the domestic and foreign literature, the number of the papers doing research on the relationship between private enterprises’s corporate performance and capital structure are rareIn consideration of the above two points the shortcomings of previous studies and in view of the availability of data, In this paper, the multi-index evaluation method is adopted to study the relationship between private listed company’s performance and the capital structure. Construct the comprehensive performance index function through the factor analysis method. This article attempts through the empirical analysis of the two relationsDoing research on empirical analysis of the two relations has two purposes. On the one hand, guide private enterprises to arrange a reasonable capital structure, to get the most optimized capital structure, so as to improve enterprise performance or value; On the other hand, the results of this studying provide government agencies with reference when government agencies set up rules, regulations and laws, such as improving the market mechanism, developing capital market and improving the legal system (especially the bankruptcy legal system).On explained variable (corporate performance indicators) selection, this paper selects the multi-index performance evaluation method instead of the previous scholars’single index method, overcoming the defect of single index method. This paper select indicators from four dimensions:profit nature, solvency nature, operation nature, development capacity nature, and each dimension selects four indicators, totally,16performance indicators. After performance indicators selection,16performance indicators are done factor analysis by using the SPSS software, then build the factor score function. In order to build a comprehensive scoring function, make each factor score function corresponding to the variance contribution rate as the weight. What’s more, comprehensive scoring function can represent most of the original information. In the paper, I treat the comprehensive scoring function as explained variable.This article studies the effect of capital structure on corporate performance from the multiple perspectives, so when choosing explaining variable, first of all, I regard total assets debt ratio as explained variable, analyzing of its relationship with corporate performance. In addition, In order to more objective and more comprehensive analysis the relationship between capital structure and corporate performance of private enterprises, I also consider the influence of the debt maturity structure on corporate performance, choosing long-term debt ratio and short-term debt ratio as explain variables. According to the provisions of the tax law, Interest expenses have tax shield effect, so interest-bearing liabilities and interest-free liabilities have different influences on enterprise performance. Therefore this article also studies from the perspective of debt servicing, analyzing the relationship of interest-bearing liabilities and corporate performance and making interest-bearing debt ratio as explanation variable. Corporate performance is also affected by many factors such as company size, growth, referring to previous scholars’s research methods, this paper introduce the firm size and growth as a control variable.In order to enhance the reliability and robustness of the empirical results, First of all This paper test overall samples according to the above research method, then overall samples are divided into different small samples, according to the annual and company size. Through the comparison of different sample’s regression results, enhance the reliability of the empirical analysis. Specifically, considering the economic environment changing every year, DO empirical tests on samples of each year respectively. In addition, According to previous scholars research results, The company size can also affect the relationship between corporate performance and capital structure. So in this paper, the company is divided into two groups according to the size of the In (total assets), then carring on the empirical research on them.This paper consists of five chapters, the contents of the chapters are arranged as following:First chapter is the introduction, elaborating this article research background, research significance, and also explaining the paper’s research methods and research framework, innovation and deficiency of this article. The second chapter is a Literature review, Respectively overview the development of the capital structure theory and existing empirical research on the literature review both at home and abroad, And expound the existing shortcomings existing in the empirical studies. Of course, these deficiencies provide the conception of ideological motivation for this paper. The third chapter is the research design, including data sources and variable setting, research hypothesis and model design of the three parts. The fourth chapter is empirical research, basing on theoretical in the first third chapters, this chapter is carried out empirical research on the relationship between corporate performance and capital structure. The empirical research part is divided into three parts, First of all, Use the overall sample for empirical analysis. In order to enhance the stability and reliability of the empirical results, and considering the economic environment is changing every year, so this paper do empirically test on the samples of each year. Finally, company size plays different influence between them, Hence, all samples of the study are divided into two groups according to the size. The fifth chapter carries on the analysis summary for the empirical results of the fourth chapter, and puts forward relevant policy suggestionsThrough the empirical analysis, this article concludes the conclusion as follows:First, no matter the overall sample or annual sample points, the private listed companies’s performance and the asset-liability ratio has significant negative correlation. In terms of the structure of debt maturity, both short-term debt and long-term debt have the negative effects on private listed company’s performance. In the case of other conditions remain unchanged (except2009), long-term liabilities’s negative impact is greater than short-term liabilities; From the point of interest on the debt structure, corporate performance and interest-bearing liabilities were significantly negative correlation. Secondly, after all samples are divided into two groups according to the size, Small scale samples’regression results are consistent with overall samples and every year samples, but in the large size of samples’regression results, except short-term debt ratio (SDAR) is yielded inconsistent results of regression coefficient of the rest of the sample, the rests are consistent. Notably, Large scale enterprise’s performance is positively related with short-term debt ratio and negatively related with long-term debt ratio, but all are not significant, indicating that the regression coefficients are no significant difference of zero; However, Small scale enterprise’s performance is significantly negative correlation with short-term debt ratio and long-term debt ratio.In order to optimize private listed companies’ capital structure and improve corporate performance, the paper puts forward some policy suggestions in line with the above empirical results:First, private enterprises need develop positively and strengthen the working capital management ability; Secondly, vigorously develop the bond market; Furthermore, perfect the legal system and establish an effective bankruptcy system; Lastly, Strengthen the bank’s financial support for private enterprises. |
