The Impact Of Financing Structure On The Operating Performance Of The Medical Instrument Listing Corporation In China

Funds is the basis of guarantee for corporate survival and development, and financing is an important channel for enterprises to raise needed operating funds. Generally, financing includes internal financing, equity financing and debt financing and so on. Different financing structures have different effects on business performance. In order to optimize the financing structure of national medical device industry, this paper study on Current financing status of Medical Devices Industry, and advance some countermeasures for reference basing on industry macroeconomic policy, the empirical analysis results, and the theory of Life Cycle of the enterprise.This paper mainly utilize the method, including: literature analysis, empirical analysis and comparative analysis to study this top. We will firstly review the relevant financing theory and literature; and select 18 A-share listed companies, and then use the financial data from the year 2002 to 2008, surrounding the internal financial rate, the equity financing rate, bank loans and commercial credit financing rate four factors and solvency ratios, the capacity of profit, the capability of operation, development capacity of the composite score P empirical analysis.The results showed that: business is more interested in the source of financing, due to the internal financing can be tax-efficient, low-cost, low-risk characteristics; therefore, company ought to enlarge the internal financing rate. It is not beneficial for the stockholder to supervise the operator under the dispersed ownership. A moderate increase in the largest shareholder will help to improve business performance, but should maintain balance between the shareholders. Partnership enterprise development and multi-bank help to reduce financing costs, however, should control the capital investment risk; excessive bank borrowing rates have a negative impact on business performance. Commercial credit to almost zero cost for enterprises to provide short-term financing, will help ease cash flow difficulties, indirectly increase profitability.