An Empirical Research On Debt Financing Of Chinese High-tech Listed Firms

High-tech firms are more and more important in Chinese economic development, manyscholars study its debt financing and form two representative viewpoints: one is that lowerDebt-Assets Ratio of high-tech firms is reasonable in China; the other is that high-techfirm's financing is mainly from stock market, and its debt is insufficient, so they thinkhigh-tech firms should enhance the scale of debt financing. But they don't both study thisissue from the relation between between liability and performance.Based on the data of Chinese high-tech listed firms sampled, the paper studies thatChinese high-tech firms' debt is reasonable or not from the relation between liability andperformance. Several conclusions have been drawn: Firstly, the performance is distinctlynegative to Debt-Assets Ratio, which does't support signal-transfering theory of Ross.Secondly, the performance is distinctly negative to Current-Liabilities Ratio. Thirdly, thereis an inverse U relation between liability and performance, which support agency theory.Through analysis, we find that Current-Liabilities Ratio of Chinese high-tech listed firms ishigh, lower Debt-Assets Ratio of high-tech firms is reasonable rather than insufficient inChina, and high-tech listed firms should enlarge the scale of stock financing, utilize debtprudently.