Analysis Of Debt Financing Structure Impact On Business Performance In Different Industries Of China

Debt financing structure determines the corporate debt capital structure, it plays an important role in corporation governance, and then impacting the corporation operating achievement. For now, research on the connection between debt financing and corporation operating achievement in our country mostly concentrated in the entire market or a single industry, few selecting the listed companies in different industries to carry on a contrast analysis. However, the debt financing structure in different industries is obviously different, the existence of the industry factors will influence research results. Therefore, it is necessary to conduct a contrast study on debt financing structure of different industries impact on business performance.The paper selected wholesale and retail trade, electric power industry and the transportation of these three distinctive business model industries as the research object. Referenced the relevant theory dividing the debt financing structure into the overall structure, the term structure and the type structure. Firstly, theoretically analyzing the affecting mechanism of the debt financing structure on corporate operating performance, and laying a foundation for the empirical test of the debt financing structure impact on corporate operating performance; Secondly respectively analyzing the status of the debt financing structure of the three major industries; and then based on the three industries listed companies from 2004 to 2013 as the sample data, and made hypothesis according to the theoretical analysis in the first step, then conducted empirical tests between debt financing structure and company operating performance based on different industries through F test, B-P test, Hausman test and establish panel data models, we drew the following conclusions:(1) When the overall level of debt is too high, it will has a negative effect on the company’s operating performance.(2) Short-term debt ratio has a positive effect on firm performance, the long-term debt ratio has negative effect on corporate performance, the maximum degree of the influence is electric power industry, in the wholesale and retail industry and transportation industry are basically the same.(3) The proportion of bank loans has a negative effect on corporate performance, and the greatest impact on the electricity industry, followed by wholesale and retail trade and transportation.(4) Business credit proportion only have a significant impact on the wholesale and retail company operating performance, while the proportion of accrued payroll to dividends payable is only has a significant impact on the transportation of corporate performance. At last, the paper made a contrastive analysis of the empirical results and put forward the relevant policy suggestions, hoping to provide reference and experience for listed companies in different industries of China to make decisions about debt financing.