An Empirical Study On The Impact Of Financing Structure On The Performance Of Listed Environmental Companies

Since the adoption of reform and opening-up policy,China's economy has achieved tremendous development.But the inefficiency brought by extensive development and the problem of environmental pollution have become increasingly serious.As one of the country's Strategic Emerging Industries,the environmental protection industry has the dual effects of economic development and environmental protection,thus plays an important role in changing China's economic structure and transforming the mode of economic growth.For a period of time,due to the fact that the providers of environmental protection services are mainly based on state-owned enterprises and their operations rely on government subsidies,they have not paid enough attention to the issue of their business performance.In the market economy,the performance of envirornmental protection companies is particularly important.Theoretical analysis shows that the financing structure has a significant impact on the performance of environmental protection companies.This essay starts from the mechanism of the influence of financing structure on corporate performance,and empirically analyzes the relationship between the financing structure and operating performance of environmental protection companies in China,and discusses strategies for optimizing and improving the financing structure of environmental protection companies.The study of financing structure first started from abroad.The initial theory of MM and the extended theory after the relaxation of its qualifying conditions constituted the basis for later research.However,the role of different researchers in the financing structure does not have a generally accepted view.Later,Jenson and Mecking broke through the research framework of MM theory,and conducted research on principal-agent relations,trying to find the best financing structure for the company.The domestic research on financing structure mainly focuses on the relationship between equity and bonds and the influence of different ratios on corporate performance.This article first reviews the origin and development of financing structure issues,and reviews the research results of the relationship between financing structure and corporate performance in recent years at home and abroad.Then,starting from the concept of financing structure and corporate performance,theoretical analysis of the three main aspects of the financing structure,namely,retained earnings,debt financing,and equity financing,influences corporate performance,and then puts forward three research hypotheses for empirical model analysis later.For the research sample,this essay selected 41 A-share listed environmental protection companies from 2012 to 2016,and analyzed the status quo of China's environmental protection enterprises from the aspects of financing structure and corporate performance.Then a mltiple regression model was established and the STATA software was used for the empirical analysis.The results show that there is a positive correlation between retained profitability and performance of listed environmental protection companies in China,and the company should maintain a certain rate of profit retention;the asset-liability ratio has an inverted U-shaped relationship with corporate performance,keeping other variables fixed,and environmental protection companies maintaining 40%-60%The asset-liability ratio is most beneficial to operating performance;the shareholding ratio of the first largest shareholder is significantly negatively related to corporate performance,and the shareholding ratio of the top ten largest shareholders is significantly positively related to business performance.Therefore,listed environmental protection companies should strengthen checks and balances to prevent one.The phenomenon of large stocks alone led to the use of the company's business decision-making power by a small number of people.This article also explains the part of the empirical results that does not completely match the theoretical hypothesis.Finally,draw the conclusion of this research and summarize the innovation and deficiency of this article.