Title :
Empirical study on capital structure and firm performance relationship of knowledge-intensive business services
Author :
Wen, Dai ; Mengjia, Hou
Author_Institution :
Sch. of Manage., Hubei Univ. of Technol., Wuhan, China
Abstract :
This paper empirically tests the relation between capital structure and firm performance in China. We selected sample consists of knowledge-intensive business services (KIBS) firms from Shanghai and Shenzhen stock markets in 2008. Empirical study shows that the proportions of intangible asset and capital structure have a weak positive correlation. We also find that asset-liability ratio is negative to firm performance. Contrary to bank loan debt ratio, business credit debt ratio is positive to firm performance. This study is significant to optimize capital structure of China listed companies in the KIBS industry.
Keywords :
commerce; finance; knowledge management; China; Shanghai stock markets; Shenzhen stock markets; asset-liability ratio; bank loan debt ratio; business credit debt ratio; capital structure; firm performance relationship; intangible asset; knowledge-intensive business services; Biological system modeling; Indexes; Industries; capital structure; firm performance; knowledge-intensive business services (KIBS);
Conference_Titel :
Artificial Intelligence and Education (ICAIE), 2010 International Conference on
Conference_Location :
Hangzhou
Print_ISBN :
978-1-4244-6935-2
DOI :
10.1109/ICAIE.2010.5641423