Debt Financing And Enterprise Performance: An Empirical Analysis Of Private Listed Enterprises In China

In the past twenty years or more, the growth rate of the non-stated economy has overtaked the stated economy profoundly. And also, the non-stated economy is doing more and more contributions to our economic development, according to the statistic analysis. Private listed enterprise is the most important part of the private economy, so the research of it means a lot.At the beginning, this essay analyses the previous researches in the problem of debt financing and enterprise performance. And then, we use the sample to find the characteristics of debt financing in the private listed enterprises, we found that: (1) Compared to the state-owned listed enterprises, the private listed enterprises has a higher liability/asset ratio.(2) In the recent decade, the ratio of liability to asset increases year by year, while the enterprise performance decreasing. (3) The private listed enterprise uses the current liability a lot, and some private enterprises did not use long-term liability at all. (4)The commercial credit and bank loan are the chief resources in debt financing, and enterprise bonds are seldom used to finance for the enterprise.After the regressional analysis, we found that: (1) In the private listed enterprises, the liability/asset ratio and the debt financing ratio are negative to enterprise performance. (2) Enterprise performance has a weak link to the debt financing activities next year. (3)The current liability has a weak negative effect on the enterprise performance, but in the contrary, the commercial credit and bank loan have a strong positive effect on enterprise performance, due to their low cost of financing etc. At last, we give some suggestion to the improvement of debt financing in the private listed enterprises.