The Research About The Relationship Between Capital Structure And Asset Utilization In Chinese Listed Company

The capital structure(named as financial structure too) is the core content of the enterprise financing decision-making. It is the proportion of debt capital (B) and ownership capital (S). The whole market value of a company (v) is V=B+S. The asset utilization can be defined in accordance with the theory of the frontier of productivity in western economics as,in the one hand, the ratio that the total cost a company devotes can be saved to the point which is in the frontier of productivity with the supposing of constant output;and in the other hand, the ratio that the total output of a company can be extended to the biggest point which is in the frontier of productivity with the supposing of constant devotion. The application of DEA makes the efficiency measure of asset utilization possible.The capital structure theories involves such great influence that capital structure makes upon many aspects of the company,as the reasonable capital structure may make a role of the declining of angency cost and the maximizing of its market value ;Many scholars drawed a conclusion that the capital structure of a firm makes a positive or negative influence upon its profitability which is relative to asset utility,through their all kinds of substantial research of their own; In the foreign country many scholars concluded that the increment of capital structure of a firm makes a positive influence upon its profitability due to the role of its restrain and encourage,through substantial research study. But some scholars who are represented by Chen Xiao-Yue in our country made a different conclusion about our listed firm for the reason there is no "tough restrain"of debt upon managers.On the basis of theirs research, this thesis delved the static teleations between them,and added the dynamic analysis,proving the decrease of the disadvantaged trend in which capital structure makes a negative impact on its profitability.Initially with analyzing of the theory of capital structure and asset utilization respectively ,and analyzing their relations through theory and research study, this thesis finds a notable relationship between the capital structure of a firm and its asset utilization ,that is: The first, in the short-term, the increment of the company liabilities results in the decrease of its asset utilization due to the increment of debts makes no restrain and encourage upon administrators and the antipathizing in liabilities in our listed firms;The second, in the long-term, this disadvantaged trend is lessening with the completement of socialized market-economy and these factors such as corporate government.