Author(s)

Chao Xiang and Shuwei Li

Corresponding Author

Chao Xiang

Abstract

Capital structure is one of the most important branches in corporate finance. It has a direct impact on company performances. The internet industry in China has grown rapidly, which plays a more and more crucial role in China’s modern economy. This paper examines the performance and capital structure of 80 China’s listed internet companies in the year of 2017. An empirical research has been conducted to find the relationship between the two factors above. According to the result, there is significant evidence to show that there is a negative correlation between the performance and capital structure of internet companies in China, and too much debt will do harm to business. Based on the discovery, this paper comes up with the suggestion on optimizing capital structure.

Keywords

Internet Industry, Listed Company, Capital Structure, Performance