The Effect Of Capital Structure Of Small And Medium Sized Private Enterprises On Enterprise Performance

The relationship between capital structure and corporate performance is the core issue of corporate governance,which has been widely concerned by scholars both at home and abroad.As early as in the last century in 50s,foreign scholars began to study the relationship between capital structure and corporate performance,the most influential one is the MM theory,which laid the foundation of modern capital structure theory.Then based on the MM theory,the premise of expanding MM theory and based on different perspectives,many new models of capital structure theory were put forward,the measure of corporate performance is from a single index into multiple indicators later and has been extended from a single profit index into a comprehensive consideration of profitability,solvency,operation,development and profitability.On theory of capital structure,the emergence of all flowers bloom together.But for the contention of a hundred schools of thought,capital structure and company performance relationship so far there is no exact answer.This paper is divided into five chapters.The first chapter is the introduction,detailedly elaborated the research background,significance,purpose,content and methods,and then,the domestic and foreign literatures about capital structure and corporate performance are reviewed.The second chapter defines the relevant concepts and expounds the theoretical basis of this study.The third chapter is the theoretical analysis and research hypothesis,combined with the theoretical basis of the second chapter,put forward the hypothesis of this article.The fourth chapter is an empirical study to verify the preliminary idea of the third chapter.The fifth chapter is the conclusion of the empirical analysis and related policy recommendations.This paper based on the theory of capital structure,equity incentive theory and other related theories,using the method of regression analysis,making in-depth analysis of the relationship between capital structure and corporate performance as well as the correlation of executive ownership regulation.After a detailed review of the relevant literature at home and abroad,choosing small and medium sized private enterprises as the research object,and then the empirical test of the effect of capital structure on corporate performance and the moderating effect of managerial ownership,the following conclusions are drawn:(1)Asset liability ratio and corporate performance are negatively correlated,that is,the higher the asset liability ratio,the worse the corporate performance,the lower the asset liability ratio,the better the corporate performance(2)Executive stock ownership has a significant positive moderating effect on capital structure and corporate performance,that is,there is a positive correlation between capital structure and corporate performance.