An Empirical Research On The Relationship Between The Debt Financing And Corporate Performance On Listed Companies

Corporate capital structure theory occupies the important position in the corporate finance theory and corporate capital structure problems are extremely important questions which should be maximized in the field of contemporary economics and enterprise management. As an important component of the capital structure of the enterprise, the impact of debt financing should be researched deeply by Chinese authors, which plays an important role in improving enterprise performance and enhancing the corporate governance. The study of the impact of debt financing on business performance abroad is already relatively mature and perfect. But at present, capital market in China is not semi-strong or strong efficient, so the reasonable use of debt financing to improve corporate performance has not received the attention deserved.Starting from the study basics, objective, meaning and the present situation of the research, based on the existing theoretical research, this article analyze the relation between debt financing and corporate performance combining theoretical research with empirical study. In model design, I select 263 companies which borrowed bank loans, did commercial credit and issued corporate bonds and medium-term notes, choose operating profit margin and return on equity and return on total assets and sales net interest rates and earnings per share as index to represent corporate performance, classify three major factors to reflect corporate performance. Then conclude the weight of three factors using the principal component analysis. Finally it is concluded that the comprehensive scoring function of evaluation about enterprise performance. The using the method of empirical research, collecting descriptive statistics for variables, using correspondence analysis and multivariate linear regression analysis, I regression analyze between the asset-liability ratio, the debt financing structure, the debt financing sources of listed company and the comprehensive scoring function after factor analysis and principal component analysis. It turns out that the lower listed company’s asset-liability ratio does not contribute to the corporate performance; short-term debt ratio has significantly positive correlation with corporate performance, long-term debt ratio has significantly negative correlation with corporate performance; Bank loan has significantly negative correlation relationship with corporate performance, commercial credit and medium-term notes has non-significantly positive correlation with corporate performance.The listed company should determine a reasonable debt ratio, adjust the structure of corporate debt financing, combine enterprise debt financing scale, type, period properly, so that debt financing can play an important role in corporate governance. It is useful to develop the bond market actively, improve the ratio of issuing corporate bonds and medium-term notes and promote debt financing form diversification.The choice of corporate financing methods and maturity plays an important role in improving business performance and improving the corporate governance. This article hope to choose a reasonable debt financing for listed companies, avoide the adverse impact on the development of enterprise financing preference, putting forward the proposal about the rational corporate debt structure, perfecting the governance tools and improving the external environment so that debt financing can improve company performance.