The Effect of Capital Structure on Corporate Performance:Empirical Enalysis of Listed Firms in China
This paper seeks to analyze the relationship between capital structure and corporate performance. The investigation has been performed using panel data procedure for a sample of 320 Chinese firms listed on the Shanghai Stock Exchange in the period from 2001 to 2006. The regression results show a significantly negative relation between short-term debt and corporate performance. However, a negative but insignificant relationship between long-term debt and profitability was found. With regard to the relationship between total debt and profitability, the results exhibit a significantly negative association between leverage ratio and performance. This suggests that agency issues may lead to Chinese firms pursuing very high debt policy, thus resulting in lower performance.
Capital structure Corporate performance Agency issues
LI Xuefeng
School of Economic and Management, Zhengzhou University of Light Industry, P. R. China
国际会议
Shanghai Conference on Management of Technology(2010上海技术管理研讨会 MOT2010)(第七届中国技术管理学术年会)
上海
英文
107-111
2010-06-19（万方平台首次上网日期，不代表论文的发表时间）