An Empirical Study On The Relationship Between Capital Structure And Corporate Performance Of Listed Companies In China

Since MM theory was put forward,the problem of capital structure has been a hot topic in academic and practical fields.With the rapid development of China's economy,the research on the relationship between capital structure and corporate performance of listed companies has become an inevitable outcome of economic development.Under the background of the continuous improvement of China's economic market and the gradual maturity of the capital market,it is of great significance to formulate a reasonable asset liability ratio policy to keep the company's asset liability ratio at a reasonable level,so as to help enterprises formulate a healthy development strategy,enhance the value of enterprises and reduce the risk of bankruptcy.Theory is the guidance of practice.By studying the impact of capital structure on corporate performance,we can enrich our understanding of Chinese characteristics and help improve the efficiency of corporate growth.As an important part of China's economic environment,the difference between state-owned enterprises and private enterprises is a goal worth studying.This paper will analyze the state-owned enterprises and private enterprises.The sample is mainly based on the data provided by listed companies of Shanghai Stock Exchange and Shenzhen Stock Exchange in 2013-2018.This study will explore the relationship and connotation between capital structure and corporate performance,and take multiple regression analysis as the main method.Two of the most common financial ratios are used to measure business performance: return on assets and return on equity.The total asset liability ratio,long-term liability ratio and short-term liability ratio are selected as the indicators of capital structure.In addition,this study also considers other factors that may affect capital structure and corporate performance,including a number of control variables,such as company size,growth opportunities,executive incentive,equity concentration and ownership type.Two specific analyses are added to distinguish state-owned enterprises and private enterprises.The results of this study are consistent with those of Bhagat and Bolton(2008),Tian and Zeitun(2007),Gleason and others(2000),indicating that there is a significant negative correlation between capital structure and corporate performanceof Listed Companies in China.The first part of this paper will give a brief introduction to the background,purpose and significance of Chinese market.Secondly,in the second part,we summarize the relevant theories and empirical literature at home and abroad with MM theory,agency cost,trade-off theory,priority financing theory,signal theory and the order of state-owned and private enterprises.The third and fourth parts will provide research methods and results.It mainly classifies and summarizes the known data(independent variable,independent variable and control variable),proposes the hypothesis and establishes the model.Then through descriptive statistics,correlation analysis and regression analysis,the empirical analysis results are obtained.Finally,the fifth part will summarize the research results,reflect on the conclusions,and put forward the shortcomings of this paper.