Manufacturing Listed Company's Capital Structure And Corporate Performance Empirical Research

Along with the development of Chinese capital market, the listed companies play more and more important role in social life. But there are many problems and defects during the course of these companies' development, especially the defects of the capital structure have already restricted the listed companies' further development and made their performance much worse or fluctuated .At the same time, this consequence will also hinder the capital market's development. While the key to the solution above is concentrating on how to optimize the capital structure. Besides, scholars mostly review how the performance influence the capital structure, while how the capital structure influences the performance is ignored to some extent. Therefore, it is necessary to deeply study the capital structure and its relation with the performance.The thesis is mainly concentrating on the study of characteristic of capital structure, its influential factors and relationship with the diversification and performance. Firstly, from the respective of industry, based on the former study, this thesis carries out data analysis on the listed companies of manufacturing industry by using descriptive methods and comparison with characteristics of other industries and overseas listed companies. It's concluded that capital structure of listed companies of manufacturing industry in china is unreasonable and lower as well as higher level of floating liabilities. Whereafter, through picking out 593 listed companies (1182 data in all)during the period of 2004～2005 ,this thesis carries out Kruskal-Wallis H,LSD test and econometrics study on the difference of capital structure, influential factors and its relationship with performance by establishing their relationship model as well as importing diversification into it, the conclusions are presented as follows:Firstly, there are some differences in total debt ratio between the subclass of manufacturing industry.Secondly, there exists the non-liner relationship between the debt level and performance, which means that performance firstly increases with debt level and decrease with it afterwards at a certain level. The most reasonable capital structure interval is between 20%～30%. The debt level below 55% can be regarded as reasonable, while the companies with debt level of 55%～60% will be more likely to experience higher financial risks.Thirdly, performance has positive relationship with return on assets and has negative relationship with total debt ratio. There is no distinctive relationship between the performance and return on equity.Finally, some advice on aiming at optimizing the capital structure and bettering performance are given based on the fruits of empirical conclusions.