Empirical Research On Relationship Between Enterprise Value And Capital Structure Of Coal Listed Companies

Since the MM theory come out,the relationship between capital structure and enterprise value has become the important issue in the financ ial theory research.Because of simple meaning, scholars at home and abroad to the enterprise value of the research emphasis is on the traditional accounting indexes such as revenue growth and in the after-tax net profit, return on total assets(ROA), return on equity(ROE).But with the development of modern economic theory,financ ial management goal of enterprise is to maximize shareholder wealth or enterprise value concept,which has been widely recognized in academia.It require companies to stand on the position of the interests to measure the value of the company.When calculating the profits are not deduct the cost of equity, raditional accounting indicators cannot reflect the real value. In 1982, Stern Stewart in the United States for the first time put forward to shareholder wealth as the core of enterprise value evaluation index which is economic value added(EVA).It is deducted from the calculation in the investors’ opportunity cost and included the full cost of cost, which overcomes the defect of the traditional accounting profit targets.So EVA become an important indicator in enterprise value evaluation system.The added value of economic is becoming more and more booming in the domestic and international research.Since 2001 Tsingtao Beer LTD made the introduction of EVA in performance evaluation system, then the state-owned assets supervis ion and administration of China in December 2009 offic ially proposed to EVA as the assessment of central enterprise performance indicators.EVA performance evaluation system has been widely recognized our country enterprise, more and more enterprises will make economic added value as an important evaluation index of enterprise value. Therefore, based on the economic value added value for the enterprise’s measure, this paper make the influence of capital structure on economic value added as the breakthrough point, then analysis the relationship between capital structure and corporate value in order to optimize capital structure and improve enterprise economic value.The coal industry is the important power to promote the economic development of our country.Because of the characteristics,their own capital investment is high.The influence of capital structure on economic value added is more outstanding.So making the industry to improve the effic iency of capital operation and reduceing the cost of capital had became the most important thing in coal industry. In recent years, the capital structure research mainly focus on coal enterprises in our country,the study of its relationship with the enterprise value is less. With the data of listed coal companies in Shanghai and Shenzhen markets during 2009 to 2015, the empirical study analyses the relationship between capital structure and management performance such as EVA.The results show that the asset-liability ratio, short-term debt ratio of coal enterprises and management performance show a significantly negative correlation, equity concentration and coal company’s operating performance is not positively correlated,state shares、institutional investors have a significantly positive correlation with economic added value. In addition, when the short-term debt ratio was 59.87%, there is the optimal capital structure which can make enterprise value maximum.At the same time, enterpris es operating income growth ratio, the company size can also promote the increase of enterprise operating performance.Based on the above conclusions,this paper puts forward the following Suggestions in order to improve enterprise value, :(1)moderately lower rates of assets and liabilities and improve the long-term debt ratio;(2)make the enterprise financial management rules and regulations perfect and strengthen internal management;(3)moderate underweight state-owned shares and dispersed ownership concentration;(4)increase the proportion of institutional investors, optimize the equity structure;(5)enhance corporate profitability and improve the level of enterprise credit;(6) broaden the financ ing channels and make reasonable use of debt financing and so on.