Empirical Research About The Effect Of Capital Structure To Performance Of Listed Companies In Different Competitive Industries

In realistic economy, any enterprise will be inevitably influenced by other competitive enterprises in industry. If the competitive intensity is different, choice of capital structure will affect finance status and finance achievement of corporation. Therefore, competition in production market has inherent inevitable contact with financing decision and achievement. Only selecting capital structure that adapt to their competitive intensity can upgrade enterprises'performance better.In empirical research, firstly this paper classifies the ten industries in "Listed Companies' Sort Direction" into three kinds of different industries. Then with the sample of listed companies in every three kind, this paper does an empirical test about the relationship of capital structure and company performance. It aims at testing the relationship of capital structure and company performance in different competitive industries.The findings of empirical research show that in our country the selecting of capital structure of listed companies has close relationship with their competitive modalities which are also called market sorts. The three empirical findings of different industries show that no matter which industries companies are in, including competitive industry, monopoly competition industry and monopoly industry, their performance has remarkable negative correlation with their debt to assets ratio. The view of oligopoly theory is well supported by empirical research in competitive industry.