The Impact Of Capital Structure On Chinese Private Enterprises’ Performance

In a period of time, the performance of listed companies is reflected in the operating results of listed companies, excellent operating performance is the foundation for the steady development of securities market. The improvement of company performance is based on the perfect corporate governance structure, As an important part of corporate governance structure, the optimization of capital structure will play a major role in improving the company’s operating performance. this paper reviews the capital structure theory represented by Modigliani, Miller and other economists, elaborated the economic model of evaluation China’s corporate performance, by using factor analysis and multiple linear regression to evaluate the impact of listed private enterprises’capital structure on their corporate performance.This paper using list on the Shanghai and Shenzhen stock market before 2008 and take private enterprises of sustained and healthy operation in 2009-2014 as research objects, according to the model parameter estimation and general results of the empirical analysis, this paper draw three conclusions:Firstly, the asset-liability ratio of main board listed private enterprises in China has a negative correlation relationship with corporate performance; Secondly, from the perspective of debt maturity, short term debt ratio and long-term debt ratio have negative correlation relationship with corporate performance, and in the situation of changes in short-term debt ratio and long-term asset-liability ratio are equal, long-term liabilities will have a more negative effect on the corporate performance; Last but not the least, from the interest structure, interest bearing liabilities have a negative relationship with corporate performance.In order to optimize the capital structure and promote the development and of the listed corporation, combine the empirical analysis conclusions, the listed company may do as the followings:on the one hand, private listed corporation can begin from the inside, by enhancing the ability and level of the enterprise capital operation and capital management; on the other hand, the government should improve and the development of private enterprises in the relevant legal system, the mechanism of market competition, and the optimization of the macro market environment.