The Relationship Between Capital Structure and Firm Performance

Abstract

The composition of the enterprise's entire capital is referred to as its capital structure. It is also referred to as a financial framework at this time. Not just long-term capital structures are included. Short-term capital structures are also included. It also includes dynamic capital structure in addition to static capital structure. Before this article, much research have studied and integrated the relationship between capital structure and company. This article hopes to absorb the results of past research and conduct a research expansion and give the view that belongs to this article. The research topic of this paper is the impact of capital structure on firm performance. This paper compares the impact of different companies through different capital structures and start with different types of companies to observe its capital structure. In this paper, a comparative analysis is mainly adopted, and the capital structure of companies in different types, different regions and social conditions is compared, so as to analyze the impact of the company's impact on the capital structure and finally conclude and give suggestions.