The Influence Of The Capital Structure Of Listed Company Performance Research In China

Since Modigliani and Miller proposed the MM theorem in 1958,the research of capital structure have been increasing.In view of the strict assumptions of MM theorem,the academic circles have discussed and discussed the capital structure problems from various angles by relaxing relevant assumptions and getting ideal conditions closer to the actual situation,so that capital structure theory has been complemented and developed.With the development of relevant theories,people found that the capital structure is not only the financial problems,it can not only affect the company's financing cost and risk management level,through the adjustment of capital structure,can also affect the company's business strategy and financing plan,further impact on the company's management mechanism,governance and corporate performance.Therefore,it is necessary to combine theory with reality to explore the impact of the current capital structure on the performance of the company.This paper first reviews the western capital structure theory from domestic and foreign scholars' research,finds that most literatures do research on the relationship between capital structure and performance,mostly from the perspective of linear and nonlinear relationship.In recent years,as the capital structure dynamic adjustment theory and the optimal capital structure theory being put forward,which has made scholars start to study the factors that influence the dynamic adjustment of capital structure.However,in the study of the relationship between capital structure and performance,the influence of capital structure adjustment behavior is not considered.Few scholars have discussed whether the effect of capital structure on corporate performance has changed since the existence of adjustment behavior.With China's current company general debt ratio being too high,in recent years the country has begun to require lowering the debt leverage.This situation already fully reflecting the company's high leverage phenomenon has aroused the attention of government.However,the enterprise has been keeping debt financing through various means which affect the company's performance.Based on this,this paper summarizes the mechanism of capital structure's impact on performance theoretically,and analyzes the impact of capital structure adjustment on company performance based on the dynamic adjustment model of capital structure.According to the theoretical analysis,the paper puts forward relevant hypothesis,with the main board market in China listed companies as the research object,using panel fixed effect model to carry on an empirical research,and considering the influence of the capital structure adjustment behavior,found that adding the adjustment of capital structure factors,capital structure adjustment in capital structure on the impact of corporate performance in the play intermediary role.Furthermore,it is assumed that capital structure has a nonlinear impact on corporate performance under the effect of adjustment coefficient.Then a panel threshold model is established for empirical research.The empirical results show that there is a threshold value of adjustment coefficient,so that capital structure has a nonlinear relationship with company performance.Through empirical research,found that the capital structure of Listed Companies in China to take the initiative to adjust the rate when in company performance,negative influence,concluded that when the company is able to quickly adjust its capital structure,blindly increase the asset liability ratio will produce unfavorable effects on company performance,so as to demonstrate the applicability of the theory of optimal capital structure the.Finally,aiming at the current situation of Listed Companies in China,this paper puts forward relevant suggestions for improving capital structure and improving company performance from the perspective of enterprise,capital market and government.