The Relation Study Between Debt Financing Structures Of Listed Companies After Being Fled From Special Treatment And Firm's Performance

Debt financing is one of companies' important financing decisions. Also it is a central issue in finance that how debt affects firm's performance. However, existing researches ignore listed company under special treatment. From Apr. 1998 to Dec.2007, there are more than 370 listed companies, which are under special treatment. Therefore, its quantity, value of listed stock, trading volume or influence tells us that listed company under special treatment cannot be neglected. On the basis of theory and practical researches about debt managerial function home and abroad, and also considering realistic status of Chinese listed companies under special treatment, the paper discusses the relationship of debt financing structure and performance of listed companies after being fled from the special camp.The paper chooses 102 A share listed companies as samples, which were once listed companies under special treatment, and analyzes their five years' dates with SPSS 13.0 for windows. In order to understand the relation between them, the paper shows the regressions not only between dependent variable and independent variables, but also between changes of them. Our statistics show that (1) with the debt proportion becoming higher, the companies' performance changes worse, because the debt proportion is too high; (2) short-term debt produces negative effect on firm's performance, while long-term debt produces positive influence on firm's performance;(3) with the condition of listed companies after being fled from special treatment stabilizing, commercial credit and bank loan have positive influence on the companies' performance; (4) the debt structures of listed companies under special treatment will change better just after being fled from special treatment.