Research On The Impact Of Capital Structure On Corporate Performance

The relationship between capital structure and corporate performance has long been the concern of many experts and scholars at home and abroad.They come up with different conclusions.These differences are also related to a number of factors,including country,time and industry.High-end equipment manufacturing industry is one of the seven strategic emerging industries in China at the present stage,which plays an important role in promoting China’s national economy and national defense construction and is related to whether China’s manufacturing industry can achieve transformation and upgrading.Considering the strategic position of China’s high-end equipment manufacturing industry,it is particularly important for high-end equipment manufacturing enterprises and countries to study how to adopt appropriate capital structure to maximize corporate performance.This paper firstly summarizes the previous research results and uses the trade-off theory,incentive theory,agency cost theory,signal transmission theory and control right theory as the theoretical basis to elaborate the influence mechanism of capital structure on corporate performance from the perspectives of debt leverage,equity concentration and equity balance degree,and puts forward the research hypothesis of this paper.The sample selection is 85 listed companies in China’s high-end equipment manufacturing industry,with a time span of 2011-2017.Firstly,descriptive statistical analysis is conducted on the current situation of its capital structure and corporate performance with these samples.Then,the panel time-point fixed effect model is selected,and the panel correction standard error method is used for regression estimation of parameters.and finally conducts a comprehensive robustness test on the regression results to obtain reliable research conclusions.The conclusions are as follows : the debt leverage of listed companies in high-end equipment manufacturing industry in China is negatively correlated with corporate performance.The higher the debt leverage,the worse the corporate performance;the equity concentration is positively correlated with corporate performance and it has a positive impact on corporate performance;the equity balance degree has little impact on corporate performance.Based on the above research results,four rationalization Suggestions are put forward: reducing the debt leverage of China’s high-end equipment manufacturing industry;improving the equity concentration of China’s high-end equipment manufacturing industry;strengthening law enforcement to improve the ability to restrain debt;expanding financing methods to develop corporate bond market.