An Empirical Analysis On The Relationship Between Capital Structure And Corporate Performance Of China’s New Energy Enterprises

Capital structure is the composition and the proportion of capital.At the same time,it is the result of investment portfolio of enterprises in a certain period.The performance of enterprise is an indicator of the operate of the enterprise in a certain period.It is also an important indicator to measure the quality of the manager’s work.Since the American economist Modiglian and Miller published their famous paper 《Capital cost,corporate finance and investment theory)) and present the MM theory,many scholars began to study the issue of capital structure deeply.People continue to relax the assumption of the MM theory,gradually formed the modified MM theory,trade-off theory,agency cost theory,pecking order theory,pecking order theory, signal transmission theory, market timing theory and so on.Thus the theory of capital structure has become more and more abundant.Throughout the literature of foreign scholars,the research on capital structure mainly focuses on the following points:What are the main factors that affect the capital structure of the company; Whether the capital structure affects the performance of the company,if there is an optimal capital structure to maximize performance when the capital structure affects firm performance.The relationship between capital structure and firm performance is very deep and many scholars have confirmed it through the study.But what is the relationship between them,whether there is an optimal capital structure to maximize the performance of enterprises and other issues has attracted the attention of scholars.Many environmental problems were brought out for our economy development, such as the global warming and air pollution,our ecological environment had been deteriorating continually.Under the background, different countries started advoca- Ting green life and low-carbon life,calling for a defence of the ecological environment.So a series of policies have been made to encourage the development of new energy by our country.But the new energy enterprises in our country started later and developed slower,and had long history of insufficient experiences and mismanagement compared to the other developed countries.Therefore, it is necessary to study the relationship between capital structure and business performance of the new energy enterprises so as to provide the theoretical basis for the well development of the new energy enterprises.This paper first reviews the historical evolution of the theory of capital structure and combing the relationship between capital structure and corporate performance at home and abroad,then understand the relationship between capital structure and corporate performance.On this basis,this study proposes three hypotheses.In order to test the hypothesis,this paper selects 85 new energy enterprises in China’s A shares in Shanghai and Shenzhen stock market in 2010-2013,then Create a database covering 340 sets of panel data,and established Multiple linear regression models.This paper use stata11.0 software to carry on the empirical analysis.Finally, according to the results of regression analysis,we put forward some suggestions for the development of new energy enterprises in China.