Empirical Study Of The Central Enterprises Holding Company Capital Structure Of Listed Companies On The Performance

The theory of capital structure is one of the most important theory in Fanancial Management,and also a hot issue studied by current academic circle.Now The development of market economy makes the capital structure of enterprises more and more complex.The academic circles on the degree of influence of capital structure on corporate performance are also different.But most scholars believe that the capital structure affect firm performance by affecting corporate governance.This paper will take this as the starting point to study on the effect of capital structure of central enterprises in China on business performance.China’s central enterprises(hereinafter referred to as the "SOEs") as the state-owned enterprise of our country is more special,known as "the eldest son of the Republic".the occupies an important position in the national economy.However, C hina’s central enterprises have encountered many problems in the development process, such as C hina’s central enterprises owner vacancy problems lead to the phenomenon of internal control,supervision of the SASAC on management is not ample.The central enterprises management corruption、the loss of state-owned assets management corruption phenomenon are relatively common,over investment problem makes the central enterprises gradually ignored the main business and so on.In recent years,in order to promote the sustainable development of the central enterprises,to better fulfill their social responsibility,political responsibility and economic responsibility,the SASAC of central enterprises capital structure and performance appraisal were made important reform.In the capital structure reform,our country has carried out the reform of non tradable shares in 2005.the central enterprises keep increasing the proportion of shares in circulation.The reform of executive compensation started in 2014,and executive equity incentive policies are likely to restart.The ce ntral enterprises to the overall listing plan has been steadily advancing.In order to alleviate the negative impact from the economic crisis in 2008,four trillion Treasury plan has been announced so that the central enterprises did the large-scale expansion in the real estate industry.In the performance of enterprise reform,in order to evaluate management performance, the provisions of the SASAC in 2010 began the implementation of all the EVA performance appraisal system in the central enterprises,which exp lained that the C hina’s central enterprises started to become bigger and stronger.The EVA performance appraisal system make us evaluate performance from the original focus on profits to focus on value creation,which is a major leap in enterprise management.In this paper,I will take the state owned enterprises--the central enterprises in our country as the research object to study the influence of capital structure on the performance in central enterprises.This paper firstly summarizes the relevant literature including the influence of the ownership structure and debt structure on corporate performance,then arranges the theory of capital structure and enterprise performance evaluation method,and briefly discusses how to affect the performance of enterprise capital structure.In the empirical analysis,this paper chooses 2010-2013 central holding enterprises listing corporation as the research object,combining with the current reform direction of C hina’s central enterprises,I pik up the proportion of tradable shares、the proportion of management shareholding and ownership concentration、ownership balancing degree、asset liability ratio and long-term debt ratio、short-term debt rate as the index of capital structure,taking EVA of the central enterprises as performance evaluation index,to study the influence of the capital structure of the central enterprises on the performance of enterprises.The research conclusion is as follows: the proportion of tradable shares、equity concentration、short-term debt ratio is significantly positively related to corporate performance,not related to the proportion of management shareholding and corporate performance. ownership balancing degree、asset liability ratio and long-term debt ratio and corporate performance is negatively related to.In the end, I put forward related suggestions according to the results of the analysis,and put forward the direction of the limitations of this study and future research.