Research On The Correlation Between Debt Financing And Performance Of Listed Companies In Construction Industry

The construction industry is an important industrial sector of the national economy.In the economically developed countries of the West,the construction i ndustry and steel and automobile industries are also called the three pillar indu stries.After the founding of the People’s Republic of China,the construction ind ustry,agriculture,industry,commerce,and transportation were called the five major material production departments.Now,the construction industry has become one of the four pillar industries that revitalize the national economy.Along with the electromechanical industry,petrochemical industry,and automobile manufacturing industry,the construction industry fully embodies the important position of the construction industry in the national economy.Although the scale of the constru ction industry has maintained a good momentum of sustained growth in recent years,competition in the domestic market as well as in the international marke t remains fierce.How the company’s performance directly affects the company’s core competitiveness,and the company’s debt financing has a significant impact on corporate performance.Based on such an environmental background,this pape r empirically studies the relationship between debt financing and performance o f listed companies in the construction industry.The author selected twelve financial indicators to measure corporate perfor mance from four aspects of the company’s profitability,debt repayment ability,gr owth capacity,and operational capacity.The company’s overall debt level,debt ma turity structure,and debt source structure were selected from three aspects.Five i ndicators such as asset-liability ratios are used to reflect corporate debt,and co mpany size and company growth are control variables.Select 50 listed compani es in the construction industry in China as samples to collect data for the five years from 2012 to 2016.First,use the principal component analysis method to reduce the dimension of performance of listed companies in the construction i ndustry to obtain comprehensive performance,and then separate from the overall level of debt.The relationship between the three aspects of the term structure and the source structure and the performance of the regression analysis,the stud y found that:(1)the level of debt financing of listed companies in the constructi on industry is negatively correlated with corporate performance;(2)the short-term liabilities and corporate performance are positively correlated,and the long-term liabilities are Corporate performance is negatively correlated;(3)Commercial ere dit and corporate performance are positively correlated;bank borrowings and cor porate performance are negatively correlated.Therefore,construction companies need to vigorously develop the corporate bond market,improve the company’s operating mechanism,and adjust the debt m aturity structure.At the same time,from the national level,we should give macro-orientation and support for policies and regulations,standardize the construction market order,advance the construction of credit systems,and improve creditor p rotection mechanisms.