| For a long time,the academic community on the relationship between capital structure and corporate value of the discussion has never stopped.In the 1950 s,the theory of MM was put forward,and the theory of corporate capital structure was established.However,it was impossible for the company to increase the value of the company through the infinite expansion of the debt,whether it was taxable or non-taxable.The trade-off theory was born,the theory says with the expansion of corporate debt,the company’s financial distress costs are correspondingly increased,the company’s best capital structure should be in balance between the debt value maximization and the financial distress costs brought by debt rise.Trade-off theory is also an important theoretical basis for the study of the nonlinear relationship between capital structure and corporate value.In the long-term,China’s listed companies external financing exist “Heavy stock light bond” phenomenon,making debt is not fully play the role of enhancing the value of the company,asset-liability ratio still has a certain room for improvement.Based on the trade-off theory,this paper uses the nonlinear panel threshold model to analyze the return of all the companies listed in the A-share market before the end of 2000(excluding the bank,non-silver financial sector and abnormal data of shell stocks),and found that the impact of asset-liability ratio on the value of the company has two thresholds in China’s A-share market,respectively 30.03%,44.75%,divided into three regional systems,in which the impact of asset-liability ratio on the value of the company showed a significant different degree of impact,when the asset-liability ratio is raised,its impact on the value of the company is diminishing,but has not yet shown a negative impact on the value of the company.Finally,this paper based on the conclusions,put forward the corresponding recommendations. |
