Research On The Impact Of Debt Financing On The Enterprises Performance Of China’s Private Listed Companies

In the modern capital structure theory, debt financing and equity financing are the two parts of a company financing. According to the duration of debt financing, it includes short-term liabilities and long-term liabilities. According to the sources of debt financing, it includes bank loans, commercial credit, bonds payable and so on. Whether its financing way and proportion arrangement is reasonable directly determines the company’s operating performance, and impacts on the corporation value. The private listed companies in China have been developing in the reform of national strategy,becoming the new hope of China’s economy, playing an important role in promoting economic growth, easing employment pressure and enhancing the vitality of the market. So how to improve the private enterprise’s company value by optimizing the debt financing decision is of significant. Through this study, we hope that the research can provides the theoretical reference to the private enterprise financing choices and the relevant policy makers decision arrangement, jointly promote the development of private enterprises.This paper takes the impact of debt financing on enterprise performance of China’s listed companies as the research object, and makes theoretically analyze firstly. According to the related theory, the paper analyzes the impact of debt financing on corporate performance firstly, and puts forward the research hypothesis. Based on the research purpose,the paper chooses the100A-share private listed companies as the research sample secondly, which have been listed in the stock market in2008and have been operating more than three years, and designs the research variables and establishes the regression model. Then, the paper extracts the sample data during2009-2012, and makes the empirical analysis, which including the descriptive statistical analysis and the correlation analysis, as well as the robustness test of the regression results. Finally, the paper obtains the empirical results and makes the reason analysis.Through the theoretical analysis and empirical results in this paper, we obtain the following conclusions:in private listed companies, the relationship between the overall level of debt financing and the corporate performance is significant negative correlation. The short-term debt financing ratio and long-term debt financing ratio are also negatively correlate with corporate performance, the significant degree of the former than the latter. The bank loans financing rate and the bonds payable financing rate are also present a significant negative correlation with corporate performance, but the commercial credit financing rate shows significant positive related with corporate performance.