Analysis of the Relationship between Debt Structure and Corporate Performance of Pharmaceutical Companies

The modern capital structure theory asserts that there is a close relationship between debt structure and corporate performance. Certain liabilities in the capital structure are beneficial to corporate governance efficiency, but high debt and an unreasonable debt structure increase business risks. As an important part of the national economy, the pharmaceutical manufacturing industry has its own financial characteristics. In this study, the correlation between the debt structure and the corporate performance of listed companies in the pharmaceutical industry from 2005 to 2009 is analyzed. Regression results show that the corporate liabilities of these companies have a major impact on their performance.