Research On The Impact Of Debt Financing On Enterprise Performance

Non-ferrous metal industrial products are important strategic materials for China’s industrial development,playing an essential role in economic development,people’s livelihood,scientific and technological development,and national defense industry.As a key industry supporting China’s goal of becoming a manufacturing powerhouse,the non-ferrous metal industry is a critical foundation of China’s processing and manufacturing industry.Debt financing is one of the important means for enterprises to raise funds,an indispensable part of the capital structure,and an important component of corporate governance structure.In particular,the non-ferrous metal industry is an asset-intensive industry,and scientific decision-making on debt financing is of great significance for improving the corporate governance structure of the non-ferrous metal industry and enhancing the performance of listed companies in the industry.This article takes Zijin Mining as a representative of the non-ferrous metal industry,and studies how its debt financing affects its financial performance,finding effective methods to improve the current situation of debt financing in the non-ferrous metal industry,which has both theoretical and practical significance.This article takes Zijin Mining as a representative in the non-ferrous metal industry,downloads the original financial data of Zijin Mining from Wind database and CSMAR Guotai An database,and processes the original financial data of Zijin Mining using software such as SPSS26.0 and Stata16.0.This thesis puts forward three assumptions,assuming that H1 Zijin Mining’s overall debt level is negatively correlated with enterprise performance,while H2 and H3 Zijin Mining’s bank loans and commercial credit loans in its debt Financing structure are positively correlated with enterprise performance.Based on Zijin Mining’s own operating status,this thesis constructs a comprehensive indicator of enterprise performance through PCA principal component analysis,uses three different indicators from Zijin Mining’s debt Financing scale and debt Financing sources to explore its impact on enterprise performance under different debt situations,and establishes an econometric model for empirical analysis based on the above content,to test the impact of Zijin Mining’s debt structure on its enterprise performance,In order to explore how to improve the performance of listed companies in the nonferrous metals industry by improving the way of debt Financing.This thesis finds that the total amount of debt Financing of Zijin Mining has a negative impact on the performance of Zijin Mining enterprises,while bank loans and commercial credit loans in the debt Financing structure have a positive impact on the performance of Zijin Mining enterprises.The empirical research results show that Zijin Mining debt Financing has a significant impact on the performance of Zijin Mining enterprises.Specifically,the asset liability ratio has a significant negative impact on corporate performance,while commercial credit loans have a significant positive impact on corporate performance,while bank loans,although having a positive impact on corporate performance,are not significant.Indicates that hypothesis H1 and H3 have been validated while H2 has not been validated.On the basis of the above conclusions,the article puts forward some suggestions for Zijin Mining and the nonferrous metal industry from three different perspectives: Zijin Mining,all nonferrous metal enterprises and banks,to help China’s nonferrous metal enterprises establish a more efficient and reasonable debt Financing structure,improve the capital use efficiency of nonferrous metal industry enterprises,and standardize the business behavior of nonferrous metal industry enterprises,Improve the performance of enterprises in the non-ferrous metal industry.