{"title":"Empirical Analysis of Private Listed Companies- Debt Financing and Business Performance in Jiangsu Province","authors":"Chengxuan Geng, Haitao E, Yijie Jiang","volume":68,"journal":"International Journal of Industrial and Systems Engineering","pagesStart":2021,"pagesEnd":2025,"ISSN":"1307-6892","URL":"https:\/\/publications.waset.org\/pdf\/3748","abstract":"
According to the theory of capital structure, this paper uses principal component analysis and linear regression analysis to study the relationship between the debt characteristics of the private listed companies in Jiangsu Province and their business performance. The results show that the average debt ratio of the 29 private listed companies selected from the sample is lower. And it is found that for the sample whose debt ratio is lower than 80%, its debt ratio is negatively related to corporate performance, while for the sample whose debt ratio is beyond 80%, the relationship of debt financing and enterprise performance shows the different trends. The conclusions reflect the drawbacks may exist that the debt ratio is relatively low and having not take full advantage of debt governance effect of the private listed companies in Jiangsu Province.<\/p>\r\n","references":"[1] Miller,M.H.,Modigliani,F.Dividend Policy,Growth,and the Valuation of\r\nShares(J).Journal of Business.Vol.34,No.4,Oct,1961.\r\n[2] Modigliani Franco, Merton H. Miller. Corporate Income Taxes and\r\nthe Cost of Capital a Correction(J).American Economic Review,\r\n1963(53):433-443.\r\n[3] Jensen M., Meckling W. Theory of the Firm: Managerial Behavior,\r\nAgency Cost and Ownership Structure(J). Journal of Financial\r\nEconomics, 1976(3):305-360.\r\n[4] Townsend R. Optimal Contracts and Competitive Markets with Costly\r\nState Verification(J). Journal of Economic Theory, 21(1979).\r\n[5] Harris, M. And Raviv, A. 1990. Capital Structure And The Information\r\nRole Of Debt (J) . Journal of Finance, 45: 321-349.\r\n[6] Ma Lu. Research on Enterprise Strategic Performance Evaluation\r\nSystem(M). Beijing, Economic and Management Press,2004(1).\r\n[7] Zhang Zhiqiang, Xiao Shufang. Quarter Earnings, Bankruptcy Costs and\r\nTaxes on the Optimal Capital Structure(J). Accounting Research,\r\n2009(4):47-54.\r\n[8] Xiao Zuoping. Empirical Research on the Ownership Structure, Capital\r\nStructure and the Enterprise Value(J). Securities Market\r\nHerald,2003(1):71-76.\r\n[9] Niu Dongmei, Chen Ruting. Analysis on Our Country-s Debt Financing\r\nGovernance Effect(J). D.C. Economic,2011(2):100-101.\r\n[10] Chu Chngbing. Empirical Analysis on China-s Listed Companies- Debt\r\nFinancing Governance Effect(J). Science and Technology Journal of\r\nChangchun University (Social Science Edition),2010(23:4):80-83, 93.","publisher":"World Academy of Science, Engineering and Technology","index":"Open Science Index 68, 2012"}