Research On Financing Structure And Governance Effect

After years of development, China’s home appliance industry has entered a mature andstable period, home appliance industry is recognized as one of the highest mature marketizationand competitive industry. This article selects home appliance enterprise as the main researchobject is mainly due to the listed home appliance enterprises’ governance problems are moretypical and persuasive.This study, using home appliance industry as the research sample, on the basis of relevanttheory and previous research, after having a brief analysis to home appliance enterprises’ currentfinancing situation,then exploring the relationship between the financing structure andgovernance effect. Respectively from the governance effect of equity financing and debtfinancing governance effect, using39listed home appliance enterprises’ financial data forempirical research, in order to objectively reflect the correlation between the degree of equityconcentration、asset-liability ratio and return on total assets. Through empirical analysis, thispaper argues that equity concentration and operating performance were positively correlated, buthigh asset-liability ratio for the listed home appliance enterprise has no positive governanceeffect, the paper finally puts forward the proposals of optimizing corporate capital structure, andactively encouraging professional managers.