The Analysis Of Relationship Between Liabilities And Performance In Chinese Small And Medium-sized Listed Companies With Different Growth

With the continuous development and improvement of China’s capital market, the operating performances of listed companies are more and more attractive. Traditional capital structure theory has revealed that the company’s liabilities for the company’s performance or value of the company with financial leverage and tax shield effect, the company’s liabilities in the financial aspects of the positive effect of on corporate performance or value has been reached a consensus. At present, the most of researches for company’s liabilities and corporate performances focused to verify liabilities play a promoting role in corporate governance. In this aspect, there is no consensus.Previous studies have shown that the company’s liabilities and performance having a positive correlation, negative correlation and no significant linear correlation, most likely because there is no consideration of an important characteristic factor of the liabilities and corporate performance causing the differences. This article defines the growth as the important characteristic factor for corporate liabilities and corporate performance, trying to verify that the different growth enterprise’s liability plays a different role on their corporate performance. Therefore, this article based on growth, proxy conflicts and corporate governance, finish theoretical analysis and empirical test for the promotion and negative effect of different growth small and medium-sized listed companies’ liabilities. This article provides the inspiration for the company decision-making.This article provides six assumptions of the relationships of the overall level of liabilities, debt maturity structure and firm performance based on the domestic and international theoretical and empirical researches for the relationship between liability and performance. Selected a total of679small and medium-sized listed companies in Shenzhen SME Board and GEM2008-2010data as the sample. At first, build small and medium-sized listed companies growth comprehensive evaluation model by a combination of static and dynamic evaluation method. Using the model to calculate the growth index of small and medium-sized listed companies in China, get a comprehensive evaluation of the growth of small and medium-sized listed companies in China. Then, use cluster analysis method to divide our sample of small and medium-sized listed companies into three kinds:high-growth, medium-growth and low-growth. At last, finish theoretical analysis and empirical testing for three kinds companies to explore the relationship of companies’ liabilities and company performance.This article gets conclusions by empirical analysis:For the low-growth small and medium-sized listed companies, the liability of corporate is positively related to performance. is positively related to corporate performance Long-term liability is negatively correlated to corporate performance. For the high-growth small and medium-sized listed companies, the liability of corporate is negatively related to performance. Short-term liability is negatively related to corporate performance Long-term liability is negatively correlated to corporate performance, but this negative is not significant. The reason for this non-significant correlation is short-term liability suppress irrational investment behavior of the managers.