Empirical Research On The Impact Of The Financing Structure On Corporate Performance Of Listed Companies

Capital structure has become a hot topic of enduring financial area。A number of theoretical and empirical research on the relationship of capital structure and corporate performance has been done by domestic and foreign scholars from different perspectives, but there is no conclusion until now.In recent years, the size of the enterprise is growing, the organization structure is getting better, and corporate is getting increasingly more efficient. With the reform of Split share structure, capital market mechanism is improving, and reform of investment and financing system is getting more thorough. There will be more ways for listed company to choose for financing. Because of the difference of Specific source, manner, duration, the capital structure and decision-making is different. The structure of corporate financing decisions will ultimately affect the company performance, so irrational financing structure would result in the emergence of corporate governance issues, to some extent, the improvement of corporate performance will be limited. Listed companies in China developed rapidly in recent years, which is the main force of China's economic development. Their performance has a direct impact on our economy. Therefore, how to improve the capital structure and improving corporate performance is particularly important.In this paper, the relationship between financing structure and corporate performance of listed companies in China is studied as the main object. The impact of financing structure on corporate performance of China's listed companies is analyzed from theoretical and empirical perspectives. In the theoretical analysis, this paper gives an overall description about correlation between capital structure and corporate performance. It defines the related concept of financing structure firstly, and then reviews the Capital Structure Theory, analyzes ways the financing structure affect corporate performance, lastly, summarizes empirical research of scholars. In empirical research, this paper builds relationships of corporate performance indicators and financial structure indicators through the establishment of models, uses SPSS software to do empirical research of sample data. This paper makes assumption, establishes models and seeks the impact of financing structure on corporate performance from perspectives of overall capital debt structure, duration of debt financing and structure of debt financing sources. The empirical research showed a significant negative correlation between financing structure and corporate performance of listed companies in China. Debt financing can not promote improvement of corporate performance. It mainly due to the order of corporate finance of listed companies in China runs counter to the West Pecking Order Theory, instead, equity financing is preferred. The development of corporate bond market lags behind, so bank credit facilities become the main form of external financing. Bank loans can not constraint and supervise the listed companies because of the special relationship between the banks and companies. Bankruptcy mechanism is not perfect, therefore, debt financing constraint mechanism is weakened, debt management cannot work. This paper gives some measures for the problems found. Such as, reversing the preference of equity financing, strengthening the bank's supervisory role, developing the bond market, and perfect the bankruptcy system to improve the financing structure and corporate performance.