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

The research of the relationship between the capital structure and the performance of the listed companies in our country is the outcome of the development of our economy. With the development of our market economy and the standardization of the companies' rules,the research of the relationship between the companies' capital structure and the performance becomes the focus of the theoretical research and practical research.Because the theory can lead the practice. Probing into the reasonable capital structure is not only useful to improve the performance of the companies, but also useful to perfect our capital market. The paper probes initially into the relationship between the capital structure and the performance of the listed companies in our country. From the empirical angle the author initially finds the suitable region of our listed companies' capital structure, which contains assets-debt ratio from 35 percent to 50 percent. The paper uses a lot of knowledge of statistics and economics. The paper also complies with the rules of the empirical study from selecting the index mark to setting up mathematical economic model. Through the analysis of ourlisted companies the paper tests and verifies three hypotheses that the author has put forward. From the empirical study in the listed companies of our country, the paper gains some basic opinions of the relationship between the capital structure and the performance. The paper also probes into the reason why our listed companies own the relationship between the capital structure and the performance. From the empirical study in our listed companies, the paper concludes that the relationship between the capital structure and the performance of our listed companies appears the quadratic curve relation. The paper also finds that the relationship between the capital structure and the performance of our listed companies appears some elasticity. Before the assets-debt ratio of the listed company attains the theoretical best point, the elasticity of the performance to the capital structure is smaller than one. But after the assets-debt ratio of the listed company attains the theoretical best point, the elasticity of the performance to the capital structure becomes the bigger than one. Incidentally the paper finds a index mark that owns the character of stability when we use it to measure the performance of the listed companies. So the paper suggests that when we evaluate the performance of the listed companies we can use it.With the development of the market economy, the research of the relationship between the capital structure and the performance of the listed companies becomes more and more important because the research is useful to realize the aim of the value maximum of the companies. The theory is based on the practice and on the contrary, the theory can lead the practice. With the perfection of the market, more and more perplex economic phenomena will come up, the relationship between the capital structure and the performance will become more and more complicated. So the research of the relationship between the capital structure and the performance should incessantly develop. So the paper only gets someconclusions according to the current economic conditions. We should still try our best to study the relationship between the capital structure and the performance according to the developing economic conditions. Just as the ancient poetry said "study is endless, we can arrive at the destination of our life only to study hard. " The author will study the relationship between the capital structure and the performance of the listed companies in our country with the development of our economy in the future. The paper is the outcome of the three years' study of studying for the Master degree. I hope specialists and experts can give me some advice and point out mistakes so that they can be corrected . I also hope my teachers and my classmates can give me some advice and point out mistakes so that they can be corrected. At last, I am very thankful for your guidance.