Capital Structure Impact On Financial Performance Of Listed Companies In Electric Power Industry

As one of the fundamental industry in China,the power industry for the sustainable and healthy development of national economy has a pivotal role.At the same time,a part of the electric power industry and capital-intensive industry,the electric power enterprise is indispensable to the development of capital market financing,oriented by this approach for large scale construction funds,constitutes a large part of the electric power enterprise capital structure.And the establishment of modern enterprise system,enterprise capital source diversification,marketization,and the resulting benefit and risk mechanism of fermentation,this all makes how to optimize business capital structure is unable to avoid in the management of listed companies in electric power industry challenges.In this context,carefully study the capital structure of listed companies in electric power industry impact on corporate performance has become very important and urgent.First of all,the first theory of capital structure and financial performance analysis shows that,at the same time,through the literature research of domestic and international relevant research literature at home and abroad and classification,description and comparison about the present situation of research,this paper the theoretical basis of.Secondly,using the analysis of Mecking and others from the financial theory and property theory analyses the composition the debt of listed companies in electric power industry has particularity,characterized by specific performance,high debt ratio level,long-term liabilities for a large proportion;Electric power industry capital structure,equity concentration,easy appeared in the process of operating decisions drainage centralized phenomenon,there is no democracy,making decisions is scientific,will affect the performance of the company,the specifically of the power industry will reduce the performance of listed companies.Thirdly,From 2012 to 2015 China a-share listed power company as the research Sample,From four sides reflecting the company debt paying ability,operation ability,profit ability and development ability of multiple financial indicators,selecting multiple financial indicators evaluating enterprise performance,such as,liquidity ratio,quick ratio,cash ratio,asset-liability ratio,debt to assets ratio,equity ratio turnover of account receivable,current asset turnover,rate of return on total assets,net assets income,net profit margin on sales,earring per share,capital preservation increment rate equity capital increment ratio,and so on.With factor analysis method to obtain A more general integrated performance indicators to evaluate the performance of companies.By regression method,using integrated performance CP is regressed in asset-liability ratio,current debt ratio,the company the first big shareholder shareholding,the top five shareholders’ shareholding in listed companies,we obtain an econometric model,analyzing the structure of debt and equity structure and corporate performance relationship.The model’s results show that power the asset-liability ratio of listed companies in China show a negative relationship with corporate performance,current debt ratio was a positive relationship with corporate performance,the company the first big shareholder shareholding and corporate performance positive relationship is not obvious,the top five shareholders’ shareholding had negative relationship with corporate performance.Finally,the paper further put forward by optimizing enterprise capital structure improve corporate performance for advice,specific include: reasonable arrangement of investment structure and improve corporate profitability;Debt financing is given priority to with long-term debt,short-term borrowing is complementary.To strengthen the company’s assets operation and management ability,reduce capital takes up;Maintain moderate shareholding concentration,optimize the equity structure.