The Impact of Capital Structure on the Performance of Chinese E-Commerce Industry Companies (2013–2019 Panel Data)

This research examined how to estimate performance in China’s e-commerce industry, by taking 2013–2019 e-commerce listed companies as the research samples and using an empirical research method to study the relationship between capital structure and firm performance. The empirical results show that...

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Main Authors: Meng-Yao Zhang, Li-Wei Lin, Huei-Ping Chen, Xuan-Ze Zhao
Format: Article
Language:English
Published: Wiley 2022-01-01
Series:Journal of Mathematics
Online Access:http://dx.doi.org/10.1155/2022/7612349
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author Meng-Yao Zhang
Li-Wei Lin
Huei-Ping Chen
Xuan-Ze Zhao
author_facet Meng-Yao Zhang
Li-Wei Lin
Huei-Ping Chen
Xuan-Ze Zhao
author_sort Meng-Yao Zhang
collection DOAJ
description This research examined how to estimate performance in China’s e-commerce industry, by taking 2013–2019 e-commerce listed companies as the research samples and using an empirical research method to study the relationship between capital structure and firm performance. The empirical results show that the debt-to-asset ratio and the long-term interest-bearing debt ratio have a negative impact on firm performance, but the impact of the long-term interest-bearing debt ratio is not significant. Moreover, the short-term interest-bearing debt ratio and the total asset turnover ratio have a positive impact on firm performance, while the impacts of the current assets ratio and intangible assets ratio on firm performance are not significant. The following suggestions are drawn from the results in order of importance. (1) Enterprises should maintain a reasonable debt-to-assets ratio and a stable capital structure and appropriately increase the proportion of short-term liabilities. (2) Firms should moderately invest to expand their scale and improve their profitability, so as to increase retained earnings and develop internal financing channels.
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institution Kabale University
issn 2314-4785
language English
publishDate 2022-01-01
publisher Wiley
record_format Article
series Journal of Mathematics
spelling doaj-art-dffd18a97f4f44d6882c2e74b19c288e2025-02-03T06:04:48ZengWileyJournal of Mathematics2314-47852022-01-01202210.1155/2022/7612349The Impact of Capital Structure on the Performance of Chinese E-Commerce Industry Companies (2013–2019 Panel Data)Meng-Yao Zhang0Li-Wei Lin1Huei-Ping Chen2Xuan-Ze Zhao3Zhejiang Institute of Mechanical & Electrical EngineeringCollege of Business AdministrationDepartment of Animation and Game DesignSchool of InformationThis research examined how to estimate performance in China’s e-commerce industry, by taking 2013–2019 e-commerce listed companies as the research samples and using an empirical research method to study the relationship between capital structure and firm performance. The empirical results show that the debt-to-asset ratio and the long-term interest-bearing debt ratio have a negative impact on firm performance, but the impact of the long-term interest-bearing debt ratio is not significant. Moreover, the short-term interest-bearing debt ratio and the total asset turnover ratio have a positive impact on firm performance, while the impacts of the current assets ratio and intangible assets ratio on firm performance are not significant. The following suggestions are drawn from the results in order of importance. (1) Enterprises should maintain a reasonable debt-to-assets ratio and a stable capital structure and appropriately increase the proportion of short-term liabilities. (2) Firms should moderately invest to expand their scale and improve their profitability, so as to increase retained earnings and develop internal financing channels.http://dx.doi.org/10.1155/2022/7612349
spellingShingle Meng-Yao Zhang
Li-Wei Lin
Huei-Ping Chen
Xuan-Ze Zhao
The Impact of Capital Structure on the Performance of Chinese E-Commerce Industry Companies (2013–2019 Panel Data)
Journal of Mathematics
title The Impact of Capital Structure on the Performance of Chinese E-Commerce Industry Companies (2013–2019 Panel Data)
title_full The Impact of Capital Structure on the Performance of Chinese E-Commerce Industry Companies (2013–2019 Panel Data)
title_fullStr The Impact of Capital Structure on the Performance of Chinese E-Commerce Industry Companies (2013–2019 Panel Data)
title_full_unstemmed The Impact of Capital Structure on the Performance of Chinese E-Commerce Industry Companies (2013–2019 Panel Data)
title_short The Impact of Capital Structure on the Performance of Chinese E-Commerce Industry Companies (2013–2019 Panel Data)
title_sort impact of capital structure on the performance of chinese e commerce industry companies 2013 2019 panel data
url http://dx.doi.org/10.1155/2022/7612349
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