Empirical Study Of Capital Structure And Corporate Performance For Jiangxi Province Listed Companies

Capital structure is an important concept of modern enterprise theory. The decisions ofcapital structure not only directly affect the value of the enterprise, but also have a crucialeffect on the operating management of company. In addition, the capital structure caninfluence the corporate governance mechanisms, thus leading to the change of theperformance of company. Recently, more and more experts and scholars devote to study theinternal relationship between the capital structure and company performance. Their researchresults have significantly accelerated the development of the limited corporation.In this dissertation, the limited corporations in Jiangxi province have been adopted as theobjects of study. The main research line of this dissertation will follows the logical thinking,which start from the illustration of capital structure theory to present condition analysis of thelisted companies located on Jiangxi province, eventually to the systematic analysis of therelationship between capital structure and performance through constructing a reasonableeconometric models. Meanwhile, the results derived from this dissertation can providereasonable suggestions to adjust the arrangements of the listed companies and optimize thecapital structure of the listed companies, eventually to improve the performance of company.The main contents are as follows:Part I: Introduction. This section is used to briefly introduce the background, aim, andsignificance of the topic.Part II: Definition of concept and research status at home and abroad. Domestic andforeign research status on the capital structure and corporate performance are reviewed.Part III: Present the situation of capital structure and performance for the listed companyin Jiangxi Province.(1) The development status of listed companies in Jiangxi. This section will analysisJiangxi development background combined with the "Rise of Central China" and the industrytransfer undertaken in Jiangxi of listed companies，which was regarded as the foundation ofthe relationship analysis.(2) The capital structure and performance analysis of listed companies in JiangxiProvince. Compared with relevant research literature, this section will analyze a series ofcapital structure and financial performance indicators of listed companies in Jiangxi，inorder to doing a foreshadowing for further empirical analysis of capital structure andcorporate performance.(3) Capital structure influence on firm performance of listed companies in Jiangxi.Through the gearing ratio of the size of the partition range, preliminary exploration of capital structure influence on firm performance of listed companies in Jiangxi.Part IV: Empirical analysis of capital structure and performance. This part is extractcomprehensive performance factor from the business performance indicators by principalcomponent analysis, using multiple linear regression model combined with the capitalstructure to further validate the changes relationship between capital structure andperformance in Jiangxi Province listed companies. The regression results have confirmed andexplained it.Part V: Conclusion. Summarize the contents of this dissertation and propose appropriatecountermeasures to optimize capital structure.