Empirical Study Of Debt Financing And Enterprise Value In Perspective Of Growth

In general, the key reason that determines whether enterprises survive and increase va lue in a long time is whether the company has a steady stream of funding. The channel ente rprises obtaining funding mainly contains external financing and internal financing, and de bt financing is an important way of gaining access to external funding. So there are a lot of correlations between debt financing and corporate value. Domestic and foreign scholars res earched the relationship between debt financing and the enterprise value, and produced thr ee results: debt financing and corporate performances are positively related; debt financing and corporate performances are negatively related; debt financing and corporate performan ces are not related. The reason for this phenomenon is that the relationship between corpor ate debt financing and corporate performance will vary in different environment and growt h factors. At the same time, the GEM listed company itself is high-growth, small-scale and rigorous, so this article chooses GEM listed companies as samples.Through theoretical analysis, this article raises hypothesis and carries on empirical an alysis using statistical methods. This article studies the impact debt financing on enterprise value in different growth environment. This will bring great significance to improve the be havior of corporate debt financing and increase corporate value. This paper firstly summari zes the theories of debt financing, and then analyzes the relationship between levels of debt financing growth, debt maturity structure, debt structure and corporate performance, whic h raise six hypotheses.This paper selects 2011 to 2013 data of 250 companies from the Shenzhen Stock Exch ange GEM as the study sample. This paper builds GEM listed company growth evaluation system based on profitable ability, operational capacity, solvency, growth, cash strength, a nd then 250 companies will be divided into groups of high-growth and low-growth group b y factor analysis. Afterward this article carries on empirical analysis from the level of debt financing, debt maturity structure and debt structure and results the corresponding conclusi ons. For the empirical results, this paper gives explanation based on background material a nd relevant theories, and proposes future research.Through research, this paper concludes: For high-growth companies, there is a signifi cant negative correlation between level of debt financing and corporate performance. Thereis an insignificant positive correlation between debt maturity structure and corporate perfo rmance. There is an insignificant negative correlation between type of debt structure and co rporate performance. For low-growth companies, there is an insignificant negative correlati on between level of debt financing and corporate performance. There is a significant positi ve correlation between debt maturity structure and corporate performance. There is an insi gnificant negative correlation between type of debt structure and corporate performance.