An Empirical Research Between Capital Structure And Performance Of Chinese Companies Listed In The USA

In recent years, the pace of economic globalization and financial integration intensifies,international cross-border capital flows more convenient, especially due to the limitedcapacity of the domestic market, more and more Chinese enterprises go abroad, turned tooverseas markets listed, and U.S. capital markets as the world’s most developed, most open tointernational capital markets, subject to a number of Chinese firms. With China’s rapiddevelopment of listed companies in the United States, the United States of Chinese listedcompanies in this group have begun to enter the academic field of vision. Most domesticcompanies listed on the United States, has achieved some success in the short term to raiselarge amounts of development funds, gained leaps and bounds. But from the second half of2010, the U.S. listed Chinese companies became the hunted target of many short bodies, justtwo years more than40companies delisting, experienced an unprecedented crisis ofconfidence, China concept stocksas a group has got Media and researchers renewed attention.Go into the reasons, this phenomenon is caused by their own governance problemsexposure,and the capital structure affected corporate governanceat very large extend. In foreign andinsidetheory territory, research on capital structure theory and its impact on the company’sperformance has alwaysbeen a hot subject which is intensively concerned, the research in thisarea has been made more profound theoretical results, but listed in the United States Chinesecompany’s capital structure as an object of research is still very rare.This paper attempts to combine the capital structure of listed companies in the UnitedStates status quo, the theoretical research and empirical research using a combination ofmethods, seek the relationship between capital structure and performance, try to explore themethod of Chinese companies listed on the United States to improve the capital structure,improve corporate governance, and to improve business performance based on the company’scapital structure optimization strategies and empirical findings and conclusions. First, at thebeginning of this article describes the research background and significance, a briefdescription of the overall framework, this paper introduces the research methods to be usedand possible innovations. Secondly, the paper briefly reviews the company’s capital structureand corporate governance corporate performance-related theories and literature on corporategovernance and corporate performance, based on the comments of the existing studies on theanalysis of the mechanism of action of the capital structure on performance, create thefoundationof the empirical study theoretical right after. Again, this article describes the U.S.capital markets in general, combined with Japan, Germany, the U.S. and British models andmodel comparison, introduce the overview of the capital structure of U.S. listed Chinesecompanies. Then, the article describes the data sources and sample selection basis, makehypothesis on the relationship between capital structure and performance, set variables, buildop the mathematicmodel. After then using principal component analysis method, the sampleperformance indicators will collect comprehensive summary of a new performance indicator,then the same capital structure targets multiple linear regression analysis, the statistical resultsand to observe similarities and differences between this study hypothesis.The empirical results show: U.S. listed company’s assets-liability ratio and performancewas significantly negatively correlated with the performance of long-term debt ratio was a significant positive correlation between ownership structure and performance relationship wasnot significant. Finally, the empirical results do cause analysis, and give somerecommendations for improvement, in order to optimize and improve the capital structure ofcorporate governance to avoid a crisis of confidence, improve the image of Chinese stocks inU.S. investors’ minds, so as to improve the financing environment of the U.S. listed Chinesecompany,which is the intentions of these company go abroad. Provide some theoreticalreference for how to further enlarge and strengthen the overseas capital markets;also providepracticalreference for other potential "going out" enterprise.