Study On Relationship Between The Capital Structure And Corporate Performance In Manufacturing Industry Based On The Gem

The relationship between capital structure and corporate performance has been the issue that the domestic and foreign scholars focus on. With the rapid development of economy and society, the market environment is becoming more and more complicated. Only in a timely manner their positioning, do the corporates formulate the appropriate and reasonable capital structure to play a positive role to improve the enterprise performance in the complex and competitive environment. The corporates on the second board market, set up in a short time, are small and high-tech oriented industries, there are significant differences in the enterprise scale, asset quality, earnings records and other aspects between the motherboard market and it. If the second board market follows the experience of motherboard market unchanged, it doesn’t help to the development of market. Furthermore, each industry has its own characteristics of running. If all industries are treated equally, it may affect the results of the research. Some scholars have concluded that different industries result in different capital structure. In order to make the results more reasonable, and to promote the development of the manufacturing industry, this paper will select the manufacturing industry on the second board as the object of study to investigate the relationship between the capital structure and the enterprise performance to perfect multi-level capital market from the following aspects.First of all, this paper describes the important effects from the research background and research significance, which the capital structure has on the improvement of the enterprise performance, and on this basis, this paper defines the related concept.Secondly, this paper reviews the related studies at home and abroad, analyses the current status of research and put forward a breakthrough point. Thirdly, make a concrete analysis of the present situation of manufacturing industry of the gem, mainly from debt structure, the ownership structure, corporate performance reveal, and then put forward the research hypothesis based on the related theories. Finally, design the model to examine the correlation between capital structure and corporate performance by using SPSS19.0, and stepwise regression to explain the relationship between the two. We can draw a conclusion that the gem manufacturing industry’s assets and liabilities rate, long-term debt ratio and ownership concentration have significantly negative correlation with firm performance, while the flow debt ratio has no significant correlation between with corporate performance. And then put forward some suggestions relevant to the problems found in the study according to the empirical results in order to promote gem manufacturing industry to optimize the capital structure and improve enterprise performance level.