The Empirical Study On The Relationship Between The Listed Companies’ Debt Financing And Performance In China

As an important branch of the field of finance, Corporate finance has a pivotal position. Domestic and foreign researchers in this field have achieved fruitful results. On the theoretical side, the M-M theory, the trade-off theory and the pecking-order theory are all well known to us. The early M-M theory draw two important conclusions under very strict assumptions:First, the enterprise value is not related to capital structure; second, more corporate liabilities, the greater the value. This is clearly inconsistent with the actual situation, so subsequent researchers modified the theory and create the trade-off theory, the pecking-order theory and so on. On the side of empirical research, there is not so obvious difference between research methods at home and abroad, where foreign empirical results are basically consistent with the theory, domestic empirical study results in different conclusions. we have to admit this fact:in western developed countries with a market economy, strong corporate has a higher degree of independence, autonomy, and many large enterprises have a longer history; while China’s real sense of the enterprise was born after the reform, the listed companies appeared much later, and private enterprises has a short history of development. China’s state-owned enterprises have been generally completed the shareholding-reform, however, still subject to the intervention of the political powers, and its market independence is not high enough. Therefore, compare the study result of private enterprises and state-owned enterprises, we can learned that the political background how to influence the enterprise performance and debt financing relationship.This article combined theoretical analysis and empirical analysis.The main contribution of this paper is:first, comparing private enterprises and state-owned enterprises with two different political background, provide another angle to discover the fact that the state-owned enterprises confront the problem of "soft debt-financing constraints"; second, for enterprises, the short term is a burden, but can help to improve corporate performance in the long run; third, this paper is based on panel data of all the qualified enterprises with15years span.Of course, there are also shortcomings:first, this paper don’t exclude the insolvent company, in my opinion, the time of certain company that had such a negative financial position accounted for only a very short period of time;n such a long span of15years. Second, this paper doesn’t define political background as dummy variables, and then use the probit model or logit model to analysis the problem.