Positive Research On Correlation Between Operation On Borrowings And Enterprise Value

Operation on borrowings is one of the most important financing approaches of enterprises, its effects on the value of the company has been researched a lot on both theoretical study and empirical analysis. But the conclusions of these studies are noticeable uncertain and even deviated from each other.This article discusses the listed companies in the information technology industry. This industry needs huge funds, and its "high risk, high yield, high-growth" inherent properties determines their choice of financing methods, compared to the determination of the scale of liabilities, and the traditional enterprise has significant industry characteristics and financial characteristics. Study the effects of different capital structure on corporate value, for the information technology industry has practical significance of listed companies. This article studies the correlation of debt financing and corporate value through theoretical and empirical analysis.Through theoretical analysis, this article believes that the enterprise value will rise at first then decline with the raise of enterprises’debt level. From financing preference order, interest capital of cost per cent debt capital cost high, so improve debt capital proportion will makes enterprise value increases; from financial lever effect, debt capital increased, financial lever coefficient variable large, financial lever effect of expansion role also increases, therefore enterprise value rose; but Dang debt capital rose to must degree, financial risk increased, offset and over financial lever effect, enterprise value will began decline; and in China the debt capital cost often higher than interest capital cost, therefore in China financing preference order of enterprises just is opposite to normal order.Empirical analysis chooses the total assets ratio and earnings per share as a measure of debt financing and corporate value respectively. Comprehensive collection of since 2007 listed companies financial data related to the information technology industry, application of statistical analysis of Peel forest correlation coefficient, Spearman rank correlation coefficient and Kendall correlation coefficient judgment there is correlation between variables, and testing has significant. And established a linear regression model and the second times curve intended close model, for linear regression analysis and second times intended close regression analysis, results display negative related between variables through 2007 and 2008, but 2009 becomes positive related; second times curve of intended close excellent of than a Yuan linear regression of intended close excellent of; second times intended close curve of second times item coefficient is less than 0; if does not consider other factors on company value of effect, when assets liabilities rate is 0.286, company value reached maximum.Combining theory and empirical analysis, this article draw the following conclusions:1. the information technology industry listed company liabilities business relationship with the company value; 2. capital structure of listed companies, information technology best, without considering other factors, the best asset-liability ratio of 0.286; 3. the information technology industry levels of debt levels have not yet reached the optimum capital structure of listed companies. Recommended listed companies of China’s information technology industry in this article may be appropriate to increase the proportion of debt capital, expand financing channel, such as financing, attract venture capital, Industrial Union of knowledge, for intellectual property pledge loan and other financing channels; should pay attention to financial risk control, and establish appropriate financial management system.Contribution of this article is:this paper focuses on combining theory and empirical analysis of the information technology industry, developed different asset-liability ratio on impact of information technology industry listed company’s earnings per share, confirms the information technology industry in China listed company’s indebtedness and corporate value there is a correlation exists between the best capital structure, and provides the industry’s current best listed company, the level of indebtedness. There has no other relative research on this industry.