An Empirical Study On The Effect Of Financing Structure On Enterprise Performance

The issue of financing has always been an important issue in the development of its business,and it is also highly valued by each and every enterprise.Whether the gem listed companies can properly choose the financing structure of the company has an important impact on the company's performance.The problem of financing structure runs through the entire process of the establishment and development of the gem listed companies.It is an important issue that the gem listed companies must face,and an unreasonable financing structure can become a bottleneck in their development.Because of this,it is an unavoidable strategic issue for companies to adjust the financing structure of gem listed companies.It is also an issue that must be considered in making financing decisions.This article takes the company listed on the China market as the research object,conducts empirical research on the influence of the company's financing structure on company performance.In the model design section,the cross-sectional data of 315 eligible gem listed companies from 2012 to 2016 was selected as the sample for the study,13 indicators that could represent the company's operating performance were selected,and factor analysis was performed on them,which was classified as the top five reflecting the company's performance.Common factors.Select asset-liability ratio,equity ratio,short-term debt ratio.,long-term capital-liability ratio,and debt financing structure index,select equity financing ratio,and shareholding ratio of the largest shareholder as equity financing structure index.In the empirical analysis,the correlation analysis and multiple regression analysis of empirical research methods,regression analysis of the company's financial structure and factor analysis of the company's performance can be derived from factor analysis.The research results show that there is a significant negative correlation between the asset-liability ratio,equity ratio,and long-term debt ratio of listed companies on China's GEM companies and corporate performance.There is a clear positive correlation between the short-term debt ratio and corporate performance.The short-termdebt financing method can help enterprises improve their performance in favor of the company.Equity financing ratio has a significant positive correlation with company performance;high concentration of equity is not conducive to the improvement of company performance.Finally,draw conclusions and put forward targeted and practical policy recommendations on strengthening the governance of debt financing,optimizing the debt maturity structure,and giving play to the advantages of equity financing.