An Empirical Study on the Relationship between Capital Structure and Firm Performance: A Case Study of Listed Manufacturing Enterprises in Hebei Province

DOI: https://doi.org/10.62517/jbm.202409318

Author(s)

Zhouqi Guo

Affiliation(s)

School of Management, Hebei University of Geology, Shijiazhuang, Hebei, China

Abstract

The financial data of Hebei Province's listed manufacturing enterprises from 2013 to 2022 is used in this paper to build a multiple linear regression model, and two-way fixed effect regression is used to examine the relationship between capital structure and corporate performance of these enterprises. The findings indicate that the retained earnings ratio and the gearing ratio of Hebei Province's listed manufacturing enterprises have a significant positive correlation with corporate performance, while the current liability ratio and the current liability ratio have a positive correlation. Based on this, this paper proposes two methods to maintain a reasonable asset-liability ratio and current liability ratio, optimize the capital structure of listed manufacturing enterprises in Hebei Province, and raise the enterprise's own capital as well as the ratio of retained earnings in profit distribution.

Keywords

Hebei Province; Manufacturing Industry; Capital Structure; Firm Performance

References

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