Year: 2024
Type: article
Abstract: Based on modern capital structure theory, especially MM theory and pecking order theory, this paper makes an in-depth empirical study on the influence of corporate financial structure on corporate value. Based on the annual report data of 35 listed companies in China in the past five years, this paper analyzes the influence of debt level, ownership structure, company size, profitability and growth on company value by using multiple linear regression model. It is found that there is a significant nonlinear relationship between debt level and company value. Moderate debt financing can enhance company value, but excessive debt level will reduce company value. The concentration of equity has a positive impact on the company value, which shows that the concentration of equity is helpful to improve the efficiency of corporate governance and the speed of decision-making. In addition, company size, profitability and growth also have a significant positive impact on company value. The conclusion of this paper provides empirical support and decision-making basis for enterprises to optimize financial structure and enhance corporate value.
Author: Qiyu Wang
Language: English
Subfield: Accounting
Domain: Social Sciences
Open Access status: diamond
OpenAlex ID: W4405762433