Empirical Study On Capital Structure Of The Listed Companies' Corporate Performance In China

Capital structure is the source of corporate funds or equity financing structure embodiment of the structure, It not only affects the company's governance structure, business characteristics and manager behavior, but also affect the cost of capital and company performance, thus, also affect a country or region's economic growth and economic stability. Reasonable capital structure has important practical significance for promoting internal control, standardizing business practices, improving corporate efficiency of resource allocation and improving the company performance.This paper firstly summarizes and analyzes the theory of capital structure, including traditional, modern and the new capital structure the development of the theory of three, and then reviews relationship literature home and abroad between capital structure and firm performance. Modern capital structure theory indicated that the company's capital structure impact on company performance in a relatively perfect capital market conditions; Developed countries has confirmed the context of this theory in more efficient capital market, at the same time domestic and foreign research results also show that the company's capital structure are significantly different in different industries. Listed Companies operating model and management tools are consistent with the characteristics of the object of and capital structure requirements, Capital formation of listed companies is based on the capital market, so we selected the listed companies as a sample, In order to prove the obvious characteristics of the capital structure of the industry, and how different sectors of the capital structure on how firm performance and in order to make the capital structure of listed companies and company performance with comparable results, this paper selects two industries-electronics industry and the construction industry as research object for the analysis of samples.This paper selects companies of electronics industry and construction industry listed in shanghai and Shenzhen A stock markets for research, There are 34 of electronics industry,26 of construction industry for research, We choose their data from 2007 to 2009, the first is compare research of the status of the capital structure on different industries, preliminary understanding of the differences in industry structure. Secondly, it is less academic use of a single factor analysis of variance method is introduced to the paper, this paper chooses the industry sector as a single factor for empirical analysis of capital structure of the two industries, the results showed that capital structure has characteristics significantly in two different industry. Moreover, this is different from the previous scholars to select only one variable, this paper selects ROE and OPE of two variables to reflect the performance of the company, chooses asset-liability ratio and the current debt ratio to represent capital structure, sets a series of control variables, propose suppose and establish five models of capital structure and corporate performance-related to proceed multiple regression analysis, empirical results show that the capital structure and corporate performance are negatively correlated between the two industry. There is significantly quadratic curve between capital structure and company performance of listed companies in the electronics industry, there exists optimal capital structure. The construction industry showed a quadratic parabola opening down, the best capital structure does not exist. When selects current liabilities ratio as indicators of capital structure, capital structure and firm performance was negatively related in the electronics industry, while no significant relationship between the construction industry, this shows that China's electronics industry based on short-term debt financing. Finally, this study combines the analysis conclusion, makes optimal capital structure of China's listed companies and measures and suggestions for improving company performance from two respects about internal factors and external factors.