An Empirical Research On Correlation Between Capital Structure And Financial Safety Of Chinese Listed Manufacturing Industry Companies

Because of the increasingly fierce market competition, enterprises must highly pay attention totheir finance situation, especially take strict precaution against the occurrence of financial crisis.With the development of information management, more and more researchers tend to usequantitative analysis method to establish the enterprise crisis early warning model to prevent theoccurrence of financial crisis. In this paper, I focus on the correlation between capital structure andfinancial security.In the paper, the sample is the data of China’s listed manufacturing companies from2011to2013.Through the methods of processing the data in the test of the correlation and the difference, Iselect the most suitable as an indicator variable to establish the financial security model. And byrandomly selected some listed companies to forecast analysis and test the accuracy of the models.Also, I test the practicability of this model.Through the positive analysis, this paper sums up the following conclusions:Firstly, the analysis of enterprise financial security when emphatically according to the long-termcapital, capital ratio, equity form flow ratios and is responsible for forming rate to expand.Secondly, from the three years of data fitting model, long-term capital debt ratio, equity ratio, theflow is responsible for the composition ratio of the largest contribution to the model, the visibledegree of financial security and the enterprise is responsible for the degree of equity structure andthe relationship between flow composition ratio has the main. From these ratios can analyze theenterprise’s current financial situation. According to the model, long-term capital debt ratio, equityratio and flow is responsible for the composition ratio, the greater the P value is smaller, the higherthe risk of the enterprise financial crisis.Lastly, from the calculation and sorting of P values, we can estimate the financial situation of nextperiod according to the variation of P values and alert us to pay more attention to the developmentof internal financial conditions.