Research On The Correlation Between Capital Structure And Corporate Performance Of China's Automobile Manufacturing Listed Companies

Automobile manufacturing industry is an important pillar industry of China's national economy.It has the characteristics of high technology content,long industrial chain and high industry correlation.At the same time,it is an important index to measure the level of industrial development in the country.After decades of rapid development,China has become the world's largest automobile producing and selling country since 2009.Today,China also has become the most critical and potential automotive market in the world.The decision-making problem of capital structure has always been an important part of the research on the financial management of the contemporary enterprises.It directly affects the capital cost and the governance structure of the enterprise,indirectly determines the business performance and the company value,and even relates to the growth and stability of the macro economy.Therefore,the paper studies the correlation between capital structure and business performance of China's automobile manufacturing listed companies,and then explores how to optimize the capital structure.This has important theoretical and practical significance for improving company performance.Firstly,based on the research experience and theoretical results of domestic and foreign scholars,this paper analyzes in detail the current status and development trend of the capital structure and corporate performance of automobile manufacturing listed companies in recent years,combining the key concepts and related theories.Secondly,the dissertation takes 65 listed companies in China's automobile manufacturing industry as the research object,cuts out the annual financial report data from 2014 to 2016,and builds a multiple linear regression model.Then starting from a broad perspective of capital structure,the paper discusses the impact of corporate capital structure on corporate performance from two aspects of debt structure and capital structure,through descriptive statistics,correlation analysis and regression analysis.Through empirical analysis,we have obtained some relevant research results.The debt-to-asset ratio and current debt ratio are significantly negatively correlated with corporate performance.There is a significant positive correlation between the proportion of the largest shareholder and the company performance.The correlation between the proportion of tradable shares and operating performance is not significant.There is a significant positive correlation between management shareholding and business performance.In addition,on the basis of the general industry law of the relationship between debt structure and performance,the paper tries to further discuss the listed companies in automobile manufacturing from the perspective of debt cost level and workingcapital management strategy,based on the development status of debt structure and the results of empirical analysis.Under different grouping conditions,the paper discusses whether the debt structure of Chinese automobile manufacturers will have different effects on company performance.Finally,based on theoretical research and empirical results,the paper puts forward some countermeasures and suggestions for optimizing capital structure and improving governance structure.We expect to provide some theoretical guidance and operational assistance for the improvement of the company's performance,and then promote the sustainable development of the company.