The Relationship Between Debt Structure And Corporate Value

Manufacturing is an industry that produces and creates value.However,China's manufacturing industry has relatively weak technological innovation capabilities and lacks corresponding technologies and intellectual property rights.Many manufacturing companies invest in production and R&D in a small amount of capital,production equipment power consumption and yield performance are poor,product costs are high,and production efficiency is relatively low.Moreover,the sub-sectors of some manufacturing industries have longer return on investment,lower profits,less high-value companies,and the reluctance of social capital to enter such industries,which has led to difficulties in manufacturing equity financing.Manufacturing companies can only seek loans from institutions such as financial institutions.Therefore,this paper analyzes and studies the debt financing of the current manufacturing enterprises,and hopes to find out the role of debts on their company value,so as to improve the value of manufacturing enterprises.At present,the debt structure of China's manufacturing enterprises is generally short-term.In the past few years,the proportion of current liabilities of manufacturing enterprises has exceeded 80%.Excessive short-term debt will lead to limited cash flow.Enterprises can't do 100%focus on production and management,and often fallinto a vicious circle of borrowing new debts and old debts.The long-term debt repayment period is longer,and the company's ability to cope with systemic risks is reduced.The time structure cannot fully exert the governance role of debt.In addition,different sources of debt will have different effects on the value of the company.Financial institutions often have a certain supervisory role for borrowing enterprises,which can effectively curb the management's abuse of funds and improve business performance to a certain extent,but financial institutions.Borrowing,due to restrictive terms,may only be used for specific purposes,limiting the liquidity of funds.Commercial credit is usually interest-free debt,the company does not need to pay interest on this part of the debt,and upstream companies may provide corresponding discount repayment measures in order to return money as soon as possible.The company can use this part of the funds to improve operations without restriction,but due to lack of Supervision,the utilization of this part of the funds may be relatively low.Therefore,exploring the impact of debt from different sources on the value of the company helps the company to target financing and increase the company's value.In order to study the above problems,this paper uses the method of empirical research to select a total of 355 A-share main board manufacturing companies from 2008 to 2017 in the Yangtze River Delta region,a total of 11 sets of data variables,select the total return on assets,operating profit margin The earnings per share and the company's Tobin Q value in the year as a measure of the company's value,using SPSS software to analyze the impact of debt situation on the company's value from the three levels of debt level,time and source,the research found that the current stage of the Yangtze River Delta The debt scale,long-term and short-term liabilities of the regional manufacturing enterprises and the financial institution's borrowings have a negative correlation with the company's value.In the company's value system,there is a positive correlation and a negative correlation between the commercial credit and the company's value.The results suggest corresponding policies and have certain theoretical and practical significance.