An Empirical Study Of Capital Structure Impacts On The Performance Of Enterprise

Electric power industry as the basis of energy industry in China, it is provides a powerful guarantee for the industrial economic development. In recent years, however, under the influence of national economic system and coal price, electric power industry development has entered a difficult period. Capital structure factors as important factors which influencing the enterprise sustainable and high efficient development, this paper analyzes the capital structure of electric power industry in-depth, to find the factors that influence corporate performance and sweepingly study the relationship among them, discuss the influenced factors of capital structure to improve corporate performance. By studying these factors to find an optimal capital structure, make the enterprise fully improve its corporate performance.Through the financial data of listed companies 47 detailed description of statistical analysis to find the status of today’s overall level of development of China’s power industry. After that, according to this Situation power industry to identify factors that affect the company’s capital structure, performance, and through mathematical and statistical software MATLAB on these factors for a detailed empirical analysis. In terms of the selection of dependent variable, this paper used accounting rate of return on total assets and net worth as two corporate performance indexes to represent the comprehensive profitability indicators of listed companies. On the independent variable selection of capital structure index, this paper from two aspects of debt and equity structure, we selected three indicators like as asset-liability ratio, current debt ratio, equity ratio. On the selection of control variable, this paper selected liquidity ratio, company size, growth rate of total assets and so on as different indicators, to fully embody factors which affect corporate performance. As for empirical analysis, we used linear regression find the influenced factors of corporate performance among the factors of capital structure, and find out the maximum optimal capital structure of corporate performance by means of nonlinear regression. In the whole processes, we used the D-W test to verify the empirical results. The results showed that the rate of assets and liabilities of current electric power industry and corporate performance present opposite directions. Also, short-term debt ratio is too high to promote the corporate performance. Via nonlinear regression analysis, on the other hand, we theoretically calculated the optimal value of assets and liabilities of electric power industry. And the method to improve corporate performances is trying to reduce existing level of assets and liabilities in order to achieve the optimal value which we measured in theory.Finally, combining with the conclusion of empirical analysis and the actual development situation of electric power industry, the author provides a series of suggestions to promote the development of power industry in China, which is based on capital structure and corporate performance, respectively.