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Web of Proceedings - Francis Academic Press
Web of Proceedings - Francis Academic Press

Research on the Correlation between Capital Structure and Enterprise Performance of Listed Enterprises in China

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DOI: 10.25236/ACEPMB.2019.042


Wentao Fan

Corresponding Author

Wentao Fan


Since the 19th National Congress, China's economy is in a transitional stage. Studying the impact of listed enterprises’ capital structure on business performance can not only optimize the allocation of resources, improving efficiency, but also play a leading role for listed companies and lead the overall transformation and upgrading of China's economy. This paper takes 50 listed enterprises as the research object, selects the return on net assets and Tobin’ Q as indicators to measure the companies’ operating performance, and selects the asset-liability ratio, current debt ratio, the proportion of shares outstanding, the proportion of state-owned shares and the concentration of equity as the measurement of capital structure. The indicators are analyzed by linear regression method. The results show that the shareholding ratio of the largest shareholder is positively correlated with the performance, and there is a significant positive correlation between the company's size and performance.


Capital structure; performance; relevance