The Empirical Research Of The Relationship Between Thecapital Structure And Enterprise Performance Of The Listed Company In Chinese Cement Industry

Since 1958 when American economist Modigliani and Miller created M&M theory, the foundation of modern enterprise capital structure was laid. Henceforth, the relationship among the capital structure, enterprise’s performance and value of the enterprise became the focus of the research all over the world. Different methods of finance and different structures of capital will not only raise different capital cost and also effect enterprise performance; therefore, they will influence the value of enterprise. So far, there are lots of papers referring to the relationship between the capital structure and value of enterprise, but the researches focusing on the special industry are rare. China has been the biggest country in cement manufacture and consume; however, related works in this special industry are rare to be found. Hence, this essay will analyze the data of the capital structure and enterprise performance from 18 listed companies in cement industry from 2010 to 2014. I hope this essay can be valuable for the sustainable development to Chinese cement industry.