A Empirical Study On EVA's Impacts On Capital Structure For The Western Small And Medium-sized Listed Companies

The study on capital structure is the focus research area of micro-finance 。 A typical operation character of modern enterprise is capital operation, the premium of capital operation is to keep a rational capital structure。 In this paper, the definition of capital structure is the proportion between the liabilities and the whole assets。 The former research has proved the affected factors to capital structure lie in capital cost, financial risk, industrial difference, the leaders' attitude, the growth of the enterprises, etc。 The research also shows the profit-gaining level of a enterprise holds a negative relationship with the capital structure。 Economic value added(EVA) is the latest tool to evaluate the performance of a enterprise。 It cares about the economic profit of a enterprise based on the cost of the capital and it is a scientific way to evaluate the real operation situation of a enterprise。 In this paper, we use the panel data of the sample companies, hoping to judge the relationship between EVA and the capital structure。 Through the empirical study, we come to such conclusions: EVA is a good index to evaluate the whole performance of a company compared with the traditional accountancy indices, in our study samples and period, EVA holds a time-lag relationship with the capital structure, it also shows a negative relationship with the capital structure and the test is significant. In this paper, we also decompose EVA and get operation EVA, investment EVA, finance EVA, tax-evasion EVA ,non-operation EVA and main business EVA。 Ourempirical study shows that the main business EVA holds a positive relationship with the capital structure, the capital structure reacts to the operation EVA in one year。 Investment EVA does not hold a significant relationship with the capital structure。 Finance EVA also holds a positive relationship with the capital structure, the capital structure reacts to the finance EVA in one year。 The tax-evasion EVA and the non-operation EVA hold negative relationship with the capital structure, they react to the capital structure in one year。...