The impact of corporate finance structure on firm value-Evidence from A-share listed companies in China’s manufacturing sector

Abstract

Based on the data of A-share listed companies in China's manufacturing industry from 2016-2020, this paper uses a panel data multiple regression models to conduct a study around the impact of different financing sources in the financing structure on corporate value and finds that the asset-liability ratio, equity concentration, asset size, and corporate growth are positively correlated with corporate value, the debt financing ratio, equity financing ratio, endogenous financing ratio, and bank borrowing ratio are The article also found that the debt financing ratio, equity financing ratio, endogenous financing ratio, and bank borrowing ratio are negatively correlated with enterprise value, and the commercial credit ratio has no significant correlation with enterprise value. The article also divides the sample into eastern, central and western regions based on the perspective of regional differences in order to study the impact of corporate financing structure on enterprise value from a macroscopic perspective, and finds that the financing levels differ in different regions, with the central region requiring particular attention.