On Ownership Of The Research On Effect Of Capital Structure On Corporate Performance

Capital structure has been one of the important research content of corporate governance, so studying the relationship between capital structure and corporate performance has great theoretical and practical significance. As early as1950s, foreign academics began to study the relationship between capital structure and corporate performance.There has been abundant research results in which the most important theory is MM theory that lay the foundation of modern capital structure. Based on MM theory, many scholars extending MM theory by relaxing assumptions of MM theory put forward more practical capital structure theories from different perspectives. Although research achievements on capital structure display an air of prosperity, on one of these theories reaches the satisfactory and consistent conclusion between capital structure and corporate performance.Based on the above research results, this paper studied literature review of related research between capital structure and corporate performance. From nature of property rights, this paper studies the relationship of capital structure and enterprise performance between state holding listed companies and the private listed companies along the clue of "theoretical analysisâ†'empirical analysisâ†'policy analysis" by using the methods of normative research and empirical research. In order to further study the relationship of capital structure and corporate performance, this paper uses the data of A-share listed companies in2007-2013from Shanghai and Shenzhen stock exchange market divided into state-controlled listed companies and private listed companies. By using panel data, this paper qualifies capital structure from equity proportion of controlling shareholders, equity proportion of outside shareholders, equity proportion of manages, leverage level, debt period structure as well as corporate performance from return on assets and return on equity, as to find the relationship of capital structure and corporate performance belonging to different nature of property rights. Finally, this paper puts forward countermeasures based on empirical analysis.This paper reaches the following conclusions:in contradiction with the theoretical analysis, there is no significant improvement in corporate performance with the increase of equity proportion of managers. How to play the role of equity incentive is still the focus of corporate governance. The equity proportion of controlling shareholder in state holding listed companies is positive with corporate performance, so their virtual property issue has not been reflected and managers have been supervised effectively. As a result of state-owned holding listed companies’ soft budget constraints and private companies’ financing difficulty, the leverage level is negative with corporate performance.