Empirical Research On The Relationship Between Corporation Performance And Capital Structure Of Listed Companies Based On EVA Method

China’s state-owned assets committee decided to from the central enterprise controller’s third term beginning to comprehensively promote the economic value added (EVA) performance evaluation on January22,2010. But, EVA is not just a kind of performance evaluation index. More importantly, it also shows that the enterprise operator’s management idea must be comprehensively changed. It is necessary that according to the enterprise itself to establish a value management system which based on EVA. And we know that capital structure could influence the corporate governance structure of a company, further it will influence the company’s performance. A reasonable corporate capital structure can improve the management efficiency of the company. As capital structure is the result of the enterprise stakeholders’rights and obligations, so to standardize enterprise’s behavior can improve the enterprise’s performance. Previous scholars only from a certain industry analyzed the relationship of capital structure and company’s performance. But industry characteristic is a very important factor for company’s capital structure, therefore this paper will research the influence which capital structure act on the company’s performance base on branch line of business. And using EVA per capital (DEVA) which belongs to the EVA evaluation system evaluates the performance of the listed company. It mainly considers that the EVA is a relative index which is not easy to compare the different sizes of listed companies. So using EVA per capital will make the paper’s research become more convincing and expect to play a guiding role to the management of our country’s listed companies.This paper focuses on researching the relevant between the listed company’s capital structure and company’s performance. Using EVA per capital (DEVA) which belongs to the EVA evaluation system evaluates the performance of the listed company, and then study the relationship between it and capital structure. This paper screened out the listed companies which meet the conditions firstly and selected manufacturing industry (machinery, equipment, instrument)(153), water and electricity gas industry (48), information technology industry (57), wholesale and retail industry (64) and real estate industry (64) five industry of386listed companies as the research object which from the Shenzhen stock exchange and Shanghai stock exchange. And then it used the386companies’section data for the Multi-element linear regression analysis. We found the panel date of sample companies’Asset-liability ratio and company performance is not significantly negative correlation; State-owned shares and company performance’s relationship is not sure; Tradable shares and the share concentration ratio both are significant correlation with corporate performance. At the same time, we also done the comparison analysis for five industry and the results are as follow:except the information technology industry’s asset ratio and company performance is positively related, other industries’asset ratio and company performance relationship is negatively correlated; the relationship between Equity structure and company is not clear; water and electricity gas industry, wholesale and retail industry and real estate industry’s growth and company performance exist linear correlated; mechanical equipment instrument industry’s growth is negatively correlate with corporate performance; information technology industry’s growth and company performance has no significant correlation. Finally, this paper puts forward suggestions for optimum corporate capital structure from the perspective of empirical conclusions and expounds the paper’s research limitations.