Research On The Relationship Between Capital Structure And Financial Performance Of New Energy Enterprises

At present,China’s new energy industry has huge market development potential and strong industry-driven role,and is a key area to support carbon peak,carbon neutral,and lead sustainable economic growth.Among them,the development of new energy industry is inseparable from the study of capital allocation,and it is of great significance to seek the optimization of capital structure for the development of the industry.This paper takes listed companies in the new energy industry as the research object,and takes the study of the relationship between capital structure and financial performance of the new energy industry as the main research content.Based on the relevant theories,an empirical study is conducted,and the financial data of 125 new energy listed companies from 2014-2021 are used as samples for correlation study and regression analysis,and empirical conclusions are drawn.Then,a capital structure study is conducted with JA Technology,a listed new energy company,to verify the empirical results based on the relationship between its capital structure and financial performance,and to elaborate the differences between its current situation and the empirical findings of the industry,calculate the optimal capital structure of JA Technology,and propose an adjustment plan for JA’s capital structure.Finally,strategies and suggestions for capital structure optimization within the industry and at the community level are proposed in the context of the current situation of JAITEC and the industry.Conclusion The results show that:(1)the gearing ratio shows an inverted U-shaped relationship with corporate financial performance;the short-term debt ratio shows a negative relationship with financial performance;and the concentration of equity of the first largest shareholder shows a positive relationship with financial performance.The concentration of equity of the top ten shareholders is negatively correlated with financial performance;executive compensation is negatively correlated with capital structure and corporate performance.(2)The capital structure of both listed companies and case companies in China’s new energy industry has problems and should be adjusted in conjunction with the optimal capital structure.(3)Measures should be taken both internally and externally to promote the reasonable allocation of capital structure of new energy listed companies,and then promote the prosperous development of new energy industry.