Empirical Analysis Of The Impact Of Debt Financing On Corporate Performance Of Listed Companies

Under of the guidence of multilevel captial market, China’s corporate bonds,short-term financing bonds and medium-term notes were launched successively since 2005, which leads China’s bond market to a new phase. Also, it affords more financing tools for listed companies. According to the classic Financing Structure Theory, debt financing could enhance the value of the company, while equity financing makes the company’s performance declined. Thus, developed countries prefer debt financing in the financing structure. Although most empirical results have proven that debt financing does raise the company’s performance in Chinese data, listed companies are more inclined to equity financing. Therefore, this paper attempts to study Chinese debt financing of listed companies since the year of 2008 by the method of Quantile Regression, in order to explore the mechanism of how debt financing impact listed companies’ performances in different level.First of all, the article made a clear definition of debt financing behavior of listed companies, then summarized the theoretical and empirical research results of financing structure selection and impact on corporate performances. Furthermore, it introduces the listed company’s financing structure theory and performance evaluation theory. On this basis, the paper chose debt financing samples of listed companies in China’s A-share market from 2009 to 2014 and matched the previous year’s samples, then used the method of paired T-test to intuitively drawn the changes of firm performance after debt financing.Subsequently, the paper established a quantile regression model to make further regression of the sample in five quantiles of 0.05,0.25,0.5,0.75 and 0.9. After the stability test, the slope equal inspection, we found that the conclusion of debt financing making corporate performance declined was been verified. At the meanwhile, we also found on the different quantiles, there were different effects on corporate performance for three forms of debt financing.Finally, on the basis of the changes of the current corporate performance over the previous period for debt financing behaviors of listed companies in longitudinal aspect, the article continued to investigate how debt financing impact on corporate performance in the same period. Find the internal mechanisms of debt financing behavior impact on corporate performance in the different quantiles, and try to provide a reference choice for corporate financing tools.