Research On The Effects Of Debt Financing Performance Of Listed Companies In Our Country

With the competition between companies intensifying, if the company wants to win in the battle, it must finance the funds what the firm needs to operate normally at first. Enterprises can raise funds from two sources, that is internal financing or external financing. Because the amount financing from internal source sometimes can not meet the corporate needs, the corporate must finance from the external source, such as issuing stock or debt financing. Chinese capital market which has experienced rapid development for ten years has become an important channel of corporate finance. However, the capital market in our country is still in the stage of infancy, it is vulnerable to lead to dramatic fluctuation because of the influence of outside macroeconomic, which brings great uncertainty to equity financing. Meanwhile, debt financing provide effective support for the company, and its role is stepping up. But whether the debt financing of the enterprises in China has played an incentive and restraining role to the managers or not, which will ultimately contribute to the improvement of business performance, remains to be tested.There are obvious differences in many aspects in different regions. For example, the level of economic development between three regions has a long gap, the market plays different roles in resource allocation process in different regions, the extent of government intervention in the market is also different. In addition, regional cultural differences are obvious. Compared with eastern region, people demonstrate that they don not trust the judicial trial in central and western regions. If people in the central and western regions want to protect their rights, they must pay a lot at first, resulting in the weak awareness of protecting rights. Besides, the phenomenon of lack of ethical culture is still worse in the central and western regions. Due to differences in the external environment of enterprises, debt financing might has a different influence to the behavior of the managers. The conclusion, which we draw from the general study of the impact of debt financing in different regions on firm performance, is worthy of our doubt. Different debt structures have different impacts on the behavior of corporate managers. The study of the impact of different debt structure on firm performance will help the listed companies to make better use of debt financing, and then improve business performance. The thesis discusses the impact of debt structure of the listed companies in different regions on the business performances. Compared with each region, we find some identical spots and different spots, and then we put forward some suggestion.