The Effect Of Debt Financing On The Performance Of China's High-tech Manufacturing Listed Companies

The research of financing structure and managing performance of the company has been one of the hottest topics in the research of corporate finance for long time.With the rapid development of economy,companies have higher requirements for its own business performance and growth,more and more companies try to improve their managing performance through more rational capital governance structure.Chinese listed companies are mainly manufacturing ones,Nearly six thousand listed companies in stock market have more than 2000 manufacturing listed companies.Manufacturing industry plays an important role in stabilizing national economic development.At present,China is in the period of speeding up the construction of the manufacturing power.In recent years,the total amount of investment for R&D(Research and development)funds has been increased,but it is still less than the intensity of R&D investment in some developed countries.As a leading and pillar industry of our country,high technology manufacturing industry depends on the sustainable development of technology innovation.It is necessary to have sufficient funds to support the innovation of product research and development.Through the description of the financing sources of R&D investment in China's high-tech industry,it is found that about 70%of the investment funds of R&D are derived from the company's own funds,and the external financing is greatly restricted.This is very bad for the improvement of the input level of the R&D in China,and hinders the high technology industry to improve the company performance.Moreover,high investment and high risk of technological innovation will make external financing difficult,and at the same time,it will increase the pressure of R&D innovation and competitiveness.Therefore,it is very important for the high-tech manufacturing companies to use the external financing to reduce the shortage of funds and the pressure of operation.At the same time,in theory and practice,the influence of the creditor as a corporate governance tool on the company performance is often ignored,especially the irrational phenomenon of the weakening and deterioration of the corporate governance effect of debt financing,as well as the serious agency costs for the creditors,as well as the coexistence of high debt and low performance,high performance and low debt in our listed companies.And loss,all of which make it very important to study the impact of debt financing on company performance and its mechanism.Therefore,this paper analyzes the problems related to the impact of debt financing on the corporate performance of the listed companies of high technology manufacturing industry.At the same time,it understands the status of the debt structure,the level of debt financing and the status of the company performance,and puts forward some suggestions on improving the performance of the company.This paper starts from the theoretical foundation,then describes the status of financial data,and finally conducts empirical research.First of all,on the mechanism of the impact of debt financing on corporate performance,this article explains the traditional MM theory,the optimal capital structure theory,the trade-off theory,the optimal order financing theory and the incentive theory,which are generally accepted by scholars.The level of debt financing and the status of corporate performance are analyzed from two perspectives,dynamic and static.The dynamic angle is measured by the absolute index of the total balance of debt financing in the year of the company and the last year,and the relative indexes of the assets and liabilities rate and the current liabilities rate are measured in the static angle.Four dimensions of management and growth were selected to measure 10 indexes,and the final empirical research part,based on the factor analysis,the comprehensive performance Y of the high-tech manufacturing listed companies was based on the explanatory variables,and the total asset growth rate and the company size were selected as the control variables.Then we use the 2014-2016 years' financial data of the A-Share Listed Companies in China's high-tech manufacturing industry to carry out multiple linear regression analysis,and replace the integrated performance Y of the explanatory variable to the net return rate ROE for robustness test.After the study,it is found that the debt financing level of the listed companies in high technology manufacturing industry is still in the low region.The debt financing means does not give full play to the tax avoidance role in the listed companies of high technology manufacturing industry,and there is a negative correlation between the assets and liabilities rate and the company performance,the current liabilities rate and the company's company performance.Performance is positive but not related.The growth and scale of companies are positively related to company performance.In order to make full use of debt financing channels,the efficiency of debt financing needs to be strengthened.The company should reduce the agency cost of debt financing,improve the level of technological innovation and enhance the profitability of the company.At the same time,the company should improve the conversion rate of high-tech achievements in order to accelerate the turnover of assets and appropriately reduce the current debt rate in order to alleviate the operating pressure and financial risk of the company.On the other hand,the strong development of the bond market can broaden the financing channels of the company,and the establishment of a perfect credit evaluation system can provide investors with a fair and objective basis for investment decision.In addition,the growth and development scale of China's high-tech manufacturing companies need to be paid great attention to.Managers should pay attention to the long-term development of the company,formulate appropriate financing strategies,and create greater value for the company.