Research On The Influence Of The Biomedical Listed Companies’Capital Structure On Corporate Performance

Capital structure is an important aspect of measuring the listed companies’ financial condition and viability,whether capital structure is reasonable is directly related to the smooth production and business activities,related to corporate profits,related to survival and development of enterprises. Therefore,that the enterprises want to be competitive must have a good capital structure to support the healthy development;similarly,if the biomedical listed companies want to get healthy and sustained development,the key is to optimize the capital structure.In order to give constructive comments on the healthy development of the biomedical listed companies,this article focuses on the influence of the biomedical listed companies’capital structure on corporate performance,and whether there exists a optimal capital structure.In this paper,we first define the concept of capital structure and corporate performance,and point out the close relationship between the capital structure and corporate performance.Then from the perspective of industry,this paper analyzes detailedly the status and characteristics of biomedical listed companies’ capital structure and corporate performance by using descriptive statistical methods,and we find that the capital structure of the biomedical listed companies have the following characteristics:a low level of overall asset-liability rato、irrational debt structure、a high concentration of share equity but poor equity balance.Then, according to previous research results and the status of capital structure and corporate performance,this article proposes empirical assumptions and establishes the regression models.Then this article selects324sample data of the biomedical listed companies from2008to2010at the end of the year,and analyzes empirically the relationship between capital structure and corporate performance.Learning from SASAC’s performance evaluation system and previous research on corporate performance evaluation system,this article selects9indicators to reflect comprehensively corporate performance.such as solvency of the debt、operating、capacity and growth.This article analyzes the nine indicators by using Factor Analysis,and gets a comprehensive performance indicator reflecting the comprehensive performance of the biomedical listed companies.Lastly,this paper takes DAR、CDR、 CR1and CR5as explanatory variables,and takes the comprehensive performance indicator as dependent variable,takes SIZE、GROW1and GROW2as control variables,and studies empirically the relationship between capital structure and corporate performance,and analyzes the empirical results.Empirical results show that the correlation between asset-liability ratio and corporate performance is significantly positive,but the correlation between current liabilities ratio and corporate performance is not significant;the correlation between CRS and corporate performance is significantly positive,but the correlation between CR1and corporate performance is not significant; the correlation between SIZE、GROW1、GROW2and corporate performance is significantly positive.And in terms of all the crossing data from2008to2010,there isn’t a reasonable scope of liabilities.At last,according to the results of the empirical study,this paper makes some recommendations to optimize the capital structure of the biomedical listed companies to improve corporate performance.