Research On The Impact Of Financing Structure On Company

With the evolution of the marketization process,China's energy industry has made tremendous progress.China has been the biggest energy producer and consumerat present.However,significant obstacles exist in the process of China's energy companies'development.Money is the biggest development bottleneck problem.The feature of energy industry is monopoly and high risk.lt is the uncertainty of the production and management of the energy companies that makes its financing more difficult.Financing effectively and keeping the financing structure balance is important to the evolution of the energy industry and the economy of the whole country and the national security.Based on above,through the research on the influence of China' energy company's financing structure on its performance,this paper aims at putting forward relevant countermeasures and suggestionsfrom the perspective of financing structure.First of all,start with financing structure,this paper describes the financing activities of China' energy companies systematically in recent years.And this paper also analyses the problems existing in the financing structure of energy companies and the possible reasons.Secondly,this paper selects the micro panel data of China's 53 energy listed companies from 2005 to 2104.And through the application of the multiple linear regression model it tests the impact of financing structure on our country energy companies performance.The study found that:(1)The financing structure of energy companies in China is out of balance and the enterprises are overly dependent on debt financing.(2)There is a strong negative relationship between the level of debt financing and corporation's performance.(3)Long-term debt and short-term debt is negatively related to the corporation's performance.(4)For the state-owned energy corporations,the results show a negative relation between the level of debt financing and he corporation's performance.And for the private companies,the level of debt financing is positively related to the corporation's performance.(5)There is a positive correlation between government subsidies and company's performance.(6)For the state-owned and private energycompanies,government subsidies are positively related to corporation's performance.Finally,this paper proposes some policysuggestions aiming at lowering the level of energy companies' debt financing according to the results of theoretical and empirical analyses.And this paper designs the path graph of relieving the risk of debt leverage and the emergency reacting system.The Objective is to keep the financing structure of energy companies balance and assure the safe operation of the energy and financial industry in China.