Empirical Research On The Relation Between Assets Structure And Performance Of China’s Listed Companies

The capital structure and asset structure, one is the source of enterprise funds,the other is the performance of enterprise funds, they are two aspects of the samefunds, However, existing research is morely about the capital structure, a bettercapital structure can improve enterprises’ management level and businessperformance. But it has great limitation for it is with a bias to the improvement ofenterprise’s financing policy. For any enterprise, the asset is the most importantwealth. And how to allocate resources, how to arrange the assets structure are themost important questions to consider for modern enterprise. Reasonable assetsstructure not only can set up a foundation for enterprises to run smoothly, also canensure enterprise managers to allocate funds more scientificly, to increase theutilization coefficent of enterprise funds and obtain greater profits. Conversely,unreasonable asset structure will have a negative impact on the enterprise, increasethe management risk of it. Therefore, with the growing role of assets structureoptimization, it is necessary to study assets structure to improve enterprises’operating efficiency and performance level.This paper classifies assets structure from six different angles including theasset form, terms, capital form, investment direction and so on, then chooses twoclassification methods to study in-depth. We use the factor analysis method toevaluate corporate performance as explanatory variables, then selects the Shanghaiand Shenzhen listed companies’ data in2009-2011to make a regression model, usesmultiple regression analysis method, verifies relationships between assets structureand enterprise performance of overall and five main industries. The empirical resultsare not the same in different industries, but overall, the proportion of physical assets,intangible assets, income assets, preserve assets and enterprise performance arepositively correlated, the proportion of expenditure assets and enterpriseperformance are negatively correlated, the proportion of financial assets andenterprise performance are in an inverted U-shaped relationship. Finally, on thebasis of empirical research, we propose suggestions about assets structureoptimization of each industry, suggest that enterprises should allocate resourcesaccording to their own characteristics.