Study On The Correlation Of Capital Structure And Corporate Performance Of China’s Automobile Manufacturing Listed Company

As the foundation and core of enterprise development, capital structure reflects the rights and obligations of business owners and creditors. It clearly defines the corporate governance structure which is closely associated with capital factor owners. It affects the effects of operational funds and the operating performance and enterprise value of the business. Due to the difference of the data sample and the design variables indicators, scholars’ theoretical and empirical researches on capital structure and corporate performance get different conclusions. This paper selects listed companies in China’s automobile manufacturing industry 2009-2013 annual report data for the study sample. Through factor analysis, it put 16 performance indicators together to measure corporate business performance. It conducted a descriptive analysis of debt structure and ownership structure. At the same time, this paper made empirical analysis by multiple linear regression of the comprehensive performance indicators and six variables, which represent debt structure and ownership structure.The empirical results show the following results:Currently, according to the level of capital structure of China’s automobile manufacturing industry, business performance was negatively correlated with asset-liability ratio and current liabilities ratio. It is positively correlated with the ratio of the largest and the top five largest shareholder. And there is no obvious relationship between business performance and equity balance degree and the proportion of state-owned shares. According to theoretical and empirical findings, some suggestions are put forward from the macro policies and micro structural aspects, including strengthening the management of information disclosure, continuing the reform of state-owned shares, broadening the financing channels and improving the corporate governance structure though the reasonable adjustments of debt and equity structure. At the same time, we should increase R & D investment in the industry to improve brand influence and achieve scale operation.