Research On The Influence Of The Capital Structure Of The Listed Companies In Henan On The Performance Of The Company

The proposition of "MM theorem" makes capital structure an important topic in firm finance research.Scholars also have no unified conclusion about the relavance between capital structure and firm performance.Domestic research on capital structure and firm performance is mostly about the whole research of a certain industry,a region or a A share listed company.However,there is less empirical analysis of Quoted Companies in Henan province.Based on the data of the quoted companies in Henan,this paper discusses the influence of the capital structure of the listed companies in Henan on the performance of the company.Capital structure is broadly defined as the composition and proportionate relavance of assets.In this paper,capital structure is divided into three aspects: financing structure(ratio of liabilities to owners' equity),debt structure and ownership structure.First of all,this paper expounds the research status of capital structure at home and abroad,and combs the theory of capital structure in each period.Next,according to the 2012-2016 years' statistics of Quoted Companies in Henan Province,a descriptive analysis is made on the development of capital structure and firm performance of Henan quoted companies.The factor analysis method is used to reduce the 13 indexes of the company's performance and to construct the performance index of the comprehensive company,which is used as the explanatory variable.Asset liability ratio,long-term capital liability ratio and the proportion of the top five shareholders are selected as explanatory variables.The company size and growth s are selected as control variables.By using the correlation analysis and regression analysis,the effect of the capital structure of the quoted companies in Henan on the performance of the company is studied.The results show that asset liability ratio has a negative impact on company performance,and long-term capital liability ratio has a negative impact on company performance.The top five shareholding ratios have a positive impact on company performance.Finally,based on the results of empirical analysis and the development of Quoted Companies in Henan,this paper puts forward some policy recommendations for optimizing the capital structure of Henan quoted companies and improving the company's performance.