Proceedings of the 2022 7th International Conference on Financial Innovation and Economic Development (ICFIED 2022)

The Impact of Capital Structure on the Development of Unlisted Firms in China

Authors
Yongkang Deng1, , Muyun He2, *, , Hang Yi3, , Qige Zhang4,
1Rutgers University New Brunswick, NJ 08901-8554, United States
2Beijing Normal University - Hong Kong Baptist University United International College, Division of Business and Management, Zhuhai, Guangdong, 519000, China
3Central University of Finance and Economics, International economy and trade, Beijing, 102200, China
4Marist College Poughkeepsie, NY 12601, United States

These authors contributed equally.

*Corresponding author. Email: q030018119@mail.uic.edu.cn
Corresponding Author
Muyun He
Available Online 26 March 2022.
DOI
https://doi.org/10.2991/aebmr.k.220307.226How to use a DOI?
Keywords
Capital Structure; Profitability; Relevant Analysis
Abstract

One of the most difficult challenges that finance managers confront is determining the impact of capital structure on a company’s profitability. Prior research has investigated the impact of capital structure on business profitability, however, most of them are from other areas of the world, with only a few studies conducted in China. The level of enterprise profitability is one of the significant factors to measure the health of enterprise development. A reasonable capital structure of the enterprise itself not only assists to improve the corporate governance mechanism and the optimal allocation of various economic resources, but also allows the enterprise to improve the economic efficiency of the enterprise itself. Therefore, the issue of the relationship between enterprise capital structure and profitability is an important part of corporate governance research. Consequently, this study has the objective to assess the influence of shareholding structure on the profitability of listed enterprises between 2013 and 2019. Descriptive statistics, correlation and multiple panel data regression models were used to examine the data. The relationship between capital structure and profitability was investigated using two distinct regression models. Using the data of listed Chinese companies from 2013 to 2019, this paper documents that shareholding concentration is positively associated with corporate performance.

Copyright
© 2022 The Authors. Published by Atlantis Press International B.V.
Open Access
This is an open access article under the CC BY-NC license.

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Volume Title
Proceedings of the 2022 7th International Conference on Financial Innovation and Economic Development (ICFIED 2022)
Series
Advances in Economics, Business and Management Research
Publication Date
26 March 2022
ISBN
978-94-6239-554-1
ISSN
2352-5428
DOI
https://doi.org/10.2991/aebmr.k.220307.226How to use a DOI?
Copyright
© 2022 The Authors. Published by Atlantis Press International B.V.
Open Access
This is an open access article under the CC BY-NC license.

Cite this article

TY  - CONF
AU  - Yongkang Deng
AU  - Muyun He
AU  - Hang Yi
AU  - Qige Zhang
PY  - 2022
DA  - 2022/03/26
TI  - The Impact of Capital Structure on the Development of Unlisted Firms in China
BT  - Proceedings of the 2022 7th International Conference on Financial Innovation and Economic Development (ICFIED 2022)
PB  - Atlantis Press
SP  - 1371
EP  - 1379
SN  - 2352-5428
UR  - https://doi.org/10.2991/aebmr.k.220307.226
DO  - https://doi.org/10.2991/aebmr.k.220307.226
ID  - Deng2022
ER  -