Study On The Capital Structure Of Construction Industry Listed Companies Of The Impact Of Economic Value Added

The concept of economic value added(EVA)was originally proposed by the State-owned Assets Supervision and Administration Commission,and the purpose was to assess the performance of central enterprises.Its advantage was to remove the cost of capital investment and reflect the companies' value creation ability more authentically.In recent years,with the people's emphasis on capital utilization gradually increased,EVA has become one of the most sought after performance evaluation indicators.Capital cost was an important factor to the EVA formula which determined the level of EVA,and capital structure was a significant factor affecting the capital cost.So a reasonable arrangement of capital structure is very important to the company,and help to improve corporate governance efficiency and control risk and to maximize the value of the enterprise.Construction industry as a national economy based industries,and other industries have inseparable link,but also led to their development for China's economy which can maintain a stable and rapid development and has made outstanding contributions.However,in the seemingly high net profit and large asset size,its capital use efficiency and value creation ability is not high,at the same time the construction industry is also affected by the national supply side reform,China's real estate and fixed assets investment was slowed down,resulting in the construction industry project demand declining and shortage of funds,part of the amount recovered is difficult to repay the high debt of principal and interest,the industry situation is very grim.In order to alleviate this unfavorable situation,this article will be how to change the capital structure of listed companies in construction industry to enhance its EVA as a research focus.On the basis of the theory of capital structure,this paper took the construction industry listed companies as the research sample,and selected the construction companies listed in Shanghai and Shenzhen from 2011 to 2015,analyzing the capital structure and EVA status.Secondly,in order to analyze the relationship between the capital structure of EVA listed companies and EVA of China,the method of multiple regression was used to analyze the relationship between the capital structure and EVA,analyzing how each index impacted EVA.The results showed that the current liabilities ratio,interest-bearing debt ratio and equity concentration of listed companies were negatively affected by the economic value-added rate.The long-term debt ratio and the proportion of senior executives hold a positive impact on the economic value.Asset-liability ratio and economic growth value was a quadratic function,when the asset-liability ratio of 50.71%,the enterprise there was the largest economic value.At the end of this paper,based on the previous research conclusions,the following suggestions were made to optimize the capital structure of the listed companies in the construction industry and to increase their economic value;to control the asset-liability ratio within the appropriate range;to reduce the current gearing ratio and to increase the long-Interest rate,to maintain the appropriate concentration of equity and to increase the proportion of senior management holdings.