Empirical Study On The Relationship Between Financing Structure And Corporatu Performance Of China’s Circular Rconomy Listcd Comnnnics

The financing structure theories contain not only the classical theories, such as theMM Theorem, Trade-off Theory and Pecking Order Theory, but also modern theories,such as Principal-agent Theory, Adverse Selection Model and Signaling Model ofAsymmetric Information Theory. Through the theoretical and empirical analysis of therelationships between financing structure and performance of circular economic listedcompanies, this paper inspects and further expands the applicability of financingstructure theory in China. From the whole of the financial markets, the expansion offinancing scale and performance improvement of circular economic listed companiesare conducive to the further development of financial markets; from the point of view oflisted companies of the circular economy, the research on the circular economic listedcompanies financial structure and performance is good for financial supporting for thecircular economic listed companies; from the perspective of the government, theresearch in this area is conducive to the formulation and evaluation of the industrialpolicy of the circular economy. After environmental issues becoming a global problem,people are optimistic about the prospects for the development and the stocks of circulareconomic companies so that concept shares of circular economy raise the concern of thepeople once launched immediately for their intrinsic commercial values. Because thepurpose of issuance of the outstanding shares of listed companies is external financing,how do the companies which issued the circular economic concept shares furtherdevelop and grow their own through capital market financing? Therefore exploring therelationships between the financing structure and performance of the circular economiclisted companies is of good theoretical and practical significance.During economic transition, circular economic development situation relates tochanges of economic growth and capital market financing and other financing sourceshave increased funding sources of circular economic listed companies. However, at thisstage whether the financing structures of the plate having helped circular economiccompanies improve performance, and promote the sustainable development of ourcountry’s circular economy need the support of empirical data and considerations onanalysis.This paper, which takes the circular economic listed companies in China as objectsfor the study, through statistical analysis and comparative analysis of circular economyand CSI300, and the empirical analysis of the two types of companies’ financingstructure and performance using of EVIEWS7.0, tries to study the circular economiclisted companies’ financial performance as well as the impact of the financing structureon the companies’ performance.The article first expounds the theory of the financing structure and performance,and conducts comparative analysis and statistical analysis of sample data of the circulareconomic listed companies, and then does an empirical study by quantitative analysis ofthe multiple regression analysis and panel data lag test, at last draws concreteconclusions and recommendations.Through empirical analysis we find that, compared with the CSI300, the debtfinancing of circular economic listed companies do not use ‘tax shield’ effect to producegood financial performance, with the sample companies remaining equity preferences inthree categories of financing that contains internal financing, debt financing and equity financing, which affect the financing structures. In the view of three blocks within thecircular economy, in various circular economic listed companies, the performance oflow carbon listed companies is the best, new energy and new materials listed companiesfollowed, and energy saving plays the worst class. The asset-liability ratios of circulareconomic listed companies are negative to the performance which is measured by EVAreturn ratios, but are positive to the performance which is measured by ROE. In thehysteresis test of performance to financing structure, we could get the conclusion thatthe reaction of performance to debt rate are three years and companies tend to improveasset-liability ratio to consolidate the achievements of performance improvement.In this paper, empirical research demonstrates the synergic process of trade-offtheory and pecking order theory and the hysteresis of the financing structure on theperformance. Therefore it is recommended that circular economic listed companiesshould make financial decisions in accordance with the synergy of dual principles, andset a reasonable financing structure, and from a long time examine the role of thefinancing structure on the performance, thereby increasing the company’s overallperformance, and ultimately effectively promoting the development of circulareconomy.This innovations of this paper are following: first, from the real impact of themulti-layered financing structure on the EVA to examine the financing effect of thecircular economy, there is a certain novelty in content; second, use the collaborative roleof dual principles and lag methods of financing effect to study the strength and its effectof the financial support of the circular economy in China, there is a certain degree ofinnovation in the method. This paper only makes the retrospective analysis ofrelationships between financial structure and performance of circular economy and doesnot do predictive analysis of them; therefore, the research has some limitations for theguiding role of the companies’ finance practice and needs further research and practicetests.