The Impact Of The Debt Ratio Of My Country's Non-financial Listed Companies On The Rate Of Return

Capital structure refers to the proportional relationship between owner's equity and creditor's equity.Debt Asset ratio is an important index of capital structure,affecting and deciding the yield of a company.The determination of the reasonable level of assets and liabilities is beneficial for the company to reduce the cost of capital and improve its performance.At present,the overall Debt Asset ratio of non financial listed companies is high,which is not conducive to the firm's steady operation.It is of great theoretical and practical significance to study the relationship between the rate of debt and the rate of return.Through statistical analysis,we find that the asset liability ratio of China's non-financial listed companies is relatively high.Among them,the current liabilities account for more than 80%.This shows that the capital structure of Chinese listed companies is unreasonable,and they rely too much on current liabilities,which increases the company's financial risk.It can be found that in recent years China's listed companies debt ratio decreased,current liabilities ratio has also been dropped,the weighted average cost of capital is reduced,thanks to China's "deleveraging" policy background,the listed company itself is also aware of the high debt rate of adverse impact on business performance.This paper analyzes the relationship between the Debt Asset ratio,the Weighted Average Cost of Capital and the Return on Assets from the theoretical point of view,and makes two hypotheses.On this basis,an empirical test is carried out.First,the unit root test shows that the Debt Asset ratio,the Weighted Average Cost of Capital and the Return on Assets are stable.Second,co integration test shows that there is a long-term equilibrium relationship between Debt Asset ratio and Return on Assets.There is also a long-term equilibrium relationship between Weighted Average Cost of Capital and Return on Assets.In addition,through Hausman test,the two models were determined to be fixed effect models.Finally,the two models are all variable intercept models by F test.The cross section weighted estimation method is used to estimate the model,and the conclusion is obtained and analyzed.According to the regression analysis of the conclusions,to verify the hypotheses two is correct,there is a negative correlation between Debt Asset ratio and Return on Assets of non-financial listed companies in China.The Weighted Average Cost of Capital and Return on Assets of Chinese non-financial listed companies are negatively correlated.