Capital Structure And Enterprise Performance Of Listed Companies In Chinese Equipment Manufacturing Industry

For enterprises,adequate funding sources are a necessary condition for the survival and development of enterprises.In reality,how to raise funds is a problem faced by enterprises in financing.But apart from various forms,the channels of corporate financing are mainly divided into two types: one is debt financing and the other is equity financing.The problem of capital structure has become a hot topic in the field of financial management research today.Capital structure has a direct relationship with factors such as agency cost,operating cost,capital cost,and financial status of the enterprise,which can affect the performance of the enterprise to a certain extent.As a typical capital-intensive industry,the equipment manufacturing industry studies the impact of capital structure on corporate performance.Listed companies in the equipment manufacturing industry can find ideas to optimize capital structure based on this,pay more attention to the way of raising corporate funds,and make the source of funds more reasonable In order to promote the optimization of enterprise performance,it can also meet the development needs of enterprises.This shows that how to choose the capital structure is a problem that current managers need to study carefully.This paper uses the annual report data of a total of 5 years of listed companies in the Shanghai and Shenzhen stock exchanges that are continuously operated by China’s equipment manufacturing industry from 2014 to 2018 as a research sample.Through a single measure of corporate performance indicators,the capital structure and Empirical analysis of the relationship between corporate performance.The empirical results show that the performance and capital structure of listed companies in China’s equipment manufacturing industry show a significant inverted U-shaped relationship.The best capital structure of equipment manufacturing companies is about 39.53%,and the enterprises within the range of(0.39.53%)Performance has a positive role in promoting,and greater than this range will reduce corporate performance.According to the results of theoretical analysis and empirical analysis,this paper puts forward suggestions for the reasonable adjustment of the capital structure for the equipmentmanufacturing industry.The capital structure of the enterprise should be controlled at about39.53%.Proportion,put forward suggestions on optimizing the capital structure from the corporate,policy and institutional levels.At the same time,we also found that increasing the scale of the enterprise,increasing the turnover rate of total assets,increasing the share of executives and the largest shareholding of the shareholders,and good growth will have a significant effect on improving corporate performance.Studying the capital structure of the equipment manufacturing industry is conducive to reasonable planning and control of the company’s debt-equity ratio,reasonable control of corporate debt scale,and provides a basis for decision-making for optimizing the capital structure,enhancing company value,and increasing corporate performance.It is conducive to enhancing international competitiveness and plays a guiding and reference role in accelerating the transformation and development of enterprises.It also plays a strong role in demonstrating the adjustment of capital structure and rational fund-raising planning of related industries,and has important guiding significance for regulating corporate financing behavior,improving resource allocation efficiency,improving company operations and management,and improving corporate performance.