Abstract
Financing constraint is an important factor affecting the development of enterprises, as corporate performance is closely correlated with capital structure. By constructing multiple linear regression model, this paper studied the relationship between capital structure and corporate performance to explore the impact of short-term and long-term liabilities on corporate performance based on data of GEM listed companies in 2018. It was found that there is an inverted U-shaped relationship between capital structure and corporate performance, where an appropriate increase of liabilities has proved beneficial to the improvement of corporate performance. The GEM listed companies should increase their long-term liabilities rather than short-term liabilities. Based on the above conclusions, this paper proposed suggestions to improve the capital structure and corporate performance of GEM listed companies.
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