Research On The Influence Of Financing Structure On Business Performance Of Listed Textile Enterprises In China

The textile industry is a traditional pillar industry of China's national economy and an important consumer industry.It plays an important role in expanding exports and attracting employment.At present,trade frictions between China and the United States and the shift of labor advantages to Southeast Asia have led to increased costs for textile companies,reduced profits,and a reduction in the proportion of endogenous financing.In terms of external financing,bond issuance conditions are strict;due to asymmetric information,it is difficult to obtain funds from banks and credit institutions.As a result,the proportion of short-term borrowings of Chinese listed textile companies is much higher than the proportion of long-term borrowings,and the overall equity financing rate has shown an upward trend.Therefore,enterprises need to prevent and control financial risks while optimizing their business risks,optimize their capital structure,reduce their capital costs,and improve their business performance.Therefore,it is of great significance to study the impact of the financing structure of Chinese listed textile companies on their business performance.According to domestic and foreign research scholars' research on the impact of capital structure on operating performance,different countries,regions,and industries have different capital structures and have different impacts on operating performance.After screening,this paper selects the public financial data of 57 Chinese listed textile companies from 2014 to 2018 as a sample to make a descriptive analysis of the current financing structure and operating performance of Chinese listed textile companies.Eleven indicators were selected for factor analysis from the four dimensions of profitability,solvency,operating ability and development ability,and the comprehensive performance score of the enterprise was constructed as the explanatory variable.The six indicators of endogenous financing rate,equity concentration,equity financing rate,asset-liability ratio,commercial credit-liability ratio,and short-term debt ratio were selected as explanatory variables,and asset size and corporate growth capacity were used as control variables.The Pearson correlation test was performed on the variable,the model was also hausman tested,the regressionmodel was determined,and finally the regression analysis was performed to explore the impact of capital structure of listed textile companies on business performance.The results show that there is a significant positive correlation between endogenous financing,commercial credit-debt ratio and corporate performance.Among them,the endogenous financing model has a good fit;the equity financing ratio,equity concentration,and corporate performance have an inverted U-shaped relationship,and the model fits.Although the fitting degree is higher than the linear function,the fitting degree is not good;the asset-liability ratio,the short-term debt ratio and the corporate performance have a significant negative correlation.Based on the results of empirical analysis and the development status of China's listed textile companies,reasonable policy recommendations are proposed.On the government side,establish and improve the financial services laws and regulations of China's listed textile companies,adopt active fiscal and tax policies;promote the development of the bond market in the market,improve the bank credit market,and optimize the capital structure;Ensure relative equity concentration,reduce the asset-liability ratio,rationally increase the use of commercial credit-liability ratios,reduce short-term debt ratios,and improve corporate financing structures.