Research On The Correlation Between Capital Structure And Earnings Quality Of High-tech Listed Companies In China

In the modern corporate governance,the capital structure and the quality of earnings impact the survival and development of enterprises,they have been an important field of academic research.If the capital structure is in a reasonable range,the company's operating performance and governance efficiency can be effectively improved.In the listed companies,due to the possibility of fraud,analyzing the quality of earnings can fully protect the interests of stakeholders.At present,there are lots of literature analyzing the capital structure and the earnings quality of listed companies,but less research on their relevance,studying the correlation between them can optimize the capital structure of enterprises and improve the quality of earnings,there are theoretical and practical significance.Firstly this paper reviews the relevant literatures about capital structure and earnings quality at home and abroad,at the same time,it expounds the correlation between them,combining with the status quo of the capital structure and earnings quality of China's hi-tech listed companies,it has focus on the relevance.Based on the effective market theory,information asymmetry theory,signal transfer theory and the relationship between capital structure and profitability,it describes the correlation between capital structure and earnings quality.This paper analyzes the current situation of the development of high-tech listed companies in China based on three perspectives of capital structure change,financial risk and earnings quality,then selects relevant financial data of China's high-tech listed companies from 2013 to 2015.Through the analysis,choosing 427 high-tech listed companies as a research sample.This paper mainly studies the correlation between capital structure and earnings quality from the aspects of ownership structure and creditor's rights structure.Using SPSS16.0 and Eviews6.0 software to analyze the financial data,factor analysis,correlation analysis and regression analysis,and then tests proposed assumptions.The empirical results show that there is a positive correlation between the proportion of management shares and the quality of earnings.There is a negative correlation between equity balance and earnings quality,and the relationship between long and short debt ratio and earnings quality is negatively correlated.The relationship between asset-liability ratio and earnings quality is negatively correlated.There is an optimal interval of the structure,and in the interval,the surplus quality reaches the optimal state.Finally,according to the empirical results,putting forward suggestion about current high-tech listed companies in China,there are moderate management stake,maintain the balance between the major shareholders of the balance,reasonable control of the enterprise's asset-liability ratio.