A Study On The Impact Of Executives' Financial Background And Capital Structure On Corporate Performance

Capital structure is one of the core elements of modern financial management research,the choice of capital structure made by a firm will have a significant impact on its performance.In the recent bond market,Guangxi Nonferrous Metals could not repay the debt on schedule,because it selected an inappropriate capital structure.Nanning Intermediate Court announced its bankruptcy liquidation.In addition,in order to win from Competitive market,listed companies not only make the optimal capital structures,but also employ qualified managers.Domestic and foreign scholars found that the proportion of CEOs with Financial experience in listed companies is increasing year by year.Based on this,this paper analyzes the impact of senior executives'financial backgrounds and capital structure on corporate performance from Upper echelons theory and Capital structure theory.This paper focuses on the impact of senior executives' financial background and capital structure on corporate performance.Firstly,this paper theoretically analyzes the relationship between senior executives' financial backgrounds,capital structure and firm performance based on the research results at home and abroad.Secondly,this paper sets the research variables,chooses some A-share listed companies of the Shanghai and Shenzhen Stock exchange as research samples in 2005-2015 and builds panel data.Again,it puts forward the research hypothesis and builds the model according to the hypothesis.Finally,the statistical software is used to test the model and draws the conclusion of this paper.Through the study,it finds that there is a significant negative correlation between the capital structure of the listed company and corporate performance,and this relationship exists regardless of the nature of the company's property rights.The executives' financial backgrounds will have a significant positive impact on the firm's performance level,which is not affected by the level of financial background and the nature of property rights.There is a "U" relationship between the interaction term of financial background and the capital structure and the firm's performance in the executives' high-value group,the state-owned sample group and the non-state sample group.In the low financial group,there is no "U" relationship between the interaction term of the financial background and the capital structure and the firm's performance.There is only a significant negative relationship between the two.In addition,there is a significant negative correlation between the growth of the company,the proportion of the first shareholders and the number of years of listing and its performance.Firm size has a significant negative impact on its performance.In addition,gender,executives'holdings and corporate tangible assets have no significant impact on firm's performance.Therefore,in order to improve the level of corporate performance,the managers of a listed company should control the capital structure to a proper level,and the actual controller of the listed company should choose the appropriate managers and sets up a high quality management team according to its actual situation.