Research On Capital Structure And Performance Of Private Enterprise In Hebei

Capital structure refers to capital configuration and its ratio relationship in the company. After long-time exploring, western theory of capital structure have been gradually systematical and become the basis of modern finance theories. It has important enlightments for our company to optimize their capital structure. Therefore, it is necessary and meaningful to do deeper research on capital structure theory and analyze its applicability in our country. However, we should notice that our country is a developing country and compared with western countries, we still have distances in many aspects. So, when doing studies in the capital structure, we should begin with its forming foundation, and then introduce and deepen the theory under the economic environment and situation of our country.This paper studies the capital structure of Hebei private enterprises and makes empirical analysis using statistical data. It is structured into six sections. Section 1 introduces the background and its meaning, research methodology and data sources, and the definitions of relative concepts; Western theory of capital structure is reviewed in section2, which aims to make theoretical pavement for the study and provide relative experience for optimizing the capital structure of private enterprises. In section3, empirical analysis using statistics is provided to disclose the inner relationships between the financial preference and capital structure of Hebei private enterprises. An econometric model is set up to study the relationships between capital structure and corporate performance. Section 5 explores the source and forming system of capital structure of private enterprises from three aspects: economic transition, the development of finance organizations and corporate governance. Section 6 concludes the paper and gives relative policy suggestions to optimize the capital structure of private enterprises.The conclusions of this paper are mainly as follows. First, the feature of financing structure of Hebei private enterprises is exterior finance mainly concluding entity finance and interior finance mainly concluding the retaining surplus. Second, Hebei private enterprises use various financing way to find capital. Third, liability and corporate performance of private enterprises is positive correlative, there is a reasonable interzone liability to get corporate performance maximum. Fourth, the asset-liability ratio of Hebei private enterprises is continuously decreasing. Fifth, the financing sequence of Hebei private enterprises is like this: interior finance-debt finance-equity finance.According to the above conclusions, the policy suggestions should be: First, improve the finance market system and set up a multi-level financing system. Second, improve the mechanism of corporate governance of private enterprises.