A Study Of The Relationship Between Chinese Listed Companies’ Debt Financing Structure And Financial Performance

The comprehensive governance effect of debt financing has been the focus of attention of theacademic community. How to choose the optimal debt structure, the performance of the enterpriseto achieve the optimal level is the common concern of business managers, and domestic andforeign economists. Debt financing as an important external financing, it is related to the costsand profits of corporate finance, and impact by signaling to external investors, and thus have animpact on corporate performance. Listed companies in China’s capital market, preference forequity financing, debt financing lag in equity financing, debt performance invalidity, studied theimpact of debt financing and performance of listed companies on the optimization of the debtfinancing, corporate governance effect to protect creditors and investment the interests of thosewho has a positive meaning. The power industry is one of the pillar industries of the nationaleconomy in China, the development trend a direct impact on the overall situation of our nationaleconomy, therefore, focus on the relationship between the debt structure and corporateperformance of listed companies of the power industry, not only for electricity industry listedcompany financing decisions with reference value, but also contribute to the power industry listedcompanies goals, so as to promote the development of China’s national economy has a certainsignificance.This paper first introduces the theory of the financing structure and corporate performance,theoretical analysis and theory on the financing structure of listed companies in China, and then asa research focus on the relationship between debt financing structure of listed companies ofChina’s electric power industry and financial performance, combined with China’s electric powerindustry listing companies report data, starting from the the debt overall level, three aspects of thedebt maturity structure and debt type structure, the use of comparative analysis, qualitative andquantitative analysis, descriptive statistics analysis, using the method of least squares regressionanalysis to establish the linear regression model, the empirical analysis of the relationshipbetween the different debt financing of the power industry listed company structure and financialperformance.The results show that our power companies listed asset-liability ratio, the rate of long-termliabilities, short-term debt ratio, commercial credit, bank borrowings and corporate performanceare negatively correlated, in which short-term liabilities Long-term liabilities on corporateperformance reverse impact significant bank borrowings negative impact on corporateperformance than commercial credit. These research findings demonstrate that the listedcompanies of China’s electric power industry and not to the positive effect of debt financing play.Therefore, this paper presents recommendations to strengthen the governance effect of debtfinancing in China are for reference only: First, listed companies have to change the results ofoperations, change management concepts, constantly optimize the financing structure, develop areasonable size of the debt, enhance the capacity of the source of financing in China’s listed powercompany. Second, national authorities should be a listed company to create a favorable financingenvironment and strive to cultivate the corporate bond market, and improve the liquidity ofcorporate bonds to improve the information disclosure mechanism to guide the financingdecisions of listed companies return to rationality; Finally, to improve China’s commercialbanking system, positive interaction cycle signal role in China’s commercial banks from "soft constraints" transition to a "hard constraints" to reduce the degree of information asymmetry, theactive use of the company’s performance to improve the financing structure, procure debtfinancing and corporate performance.