A Study On The Impact Of Capital Structure On Business Performance

Under the background of China's economic development entering the new normal,the cultivation and development of innovative small and medium-sized enterprises have important practical significance for the adjustment of industrial structure.As one of the main markets to cultivate small and medium-sized enterprises,the gem market has greatly promoted the development of small and medium-sized enterprises in China.Therefore,this article chooses the gem listed enterprises as the sample,from the capital aspect explores the enterprise's capital constitution to the management benefit influence,the purpose is to provide the theoretical basis for the enterprise operator to adopt the reasonable capital structure.In this paper,the single index evaluation method is used to determine the research index,and the Tobin Q value is used to measure the business performance level because the index can fully consider the time value of money.Using the long-term debt ratio to measure the capital structure of an enterprise can better reflect the impact of capital on the development of the enterprise.At the same time,some control variables,such as cash flow,firm size,enterprise age and so on,have been added to the study.These variables are divided into internal control variables and external control variables,so as to determine more accurately whether the factors that affect the level of enterprise performance come from inside or outside of the enterprise.The mean regression model and the score are used.The mean regression model is used to study the effect of capital structure on business performance under conditional expectation,and the quantile regression model is used to classify the distribution of dependent variables.After regression analysis,we can find out whether the influence of capital structure will change and the degree of change under different operating performance level.Through the study of the regression results,we can see whether the mean regression model or in quantile regression model of capital structure on corporate performance have a significant impact,but the results of quantile regression show that,in the capital structure influences the performance level of the lower operating performance will be weakened,and the influence of corporate capital structure performance level the high will be enhanced.At the same time,the control variable added,also found the most influence on the operating performance of the control variables are significant,which includes both internal control variables including external control variables.Finally,in view of the research results of this paper,the paper puts forward some policy suggestions to improve the capital structure and the management performance level of the enterprise from the two angles of enterprise and market respectively.