The listed companies in China’s food and beverage industry have good profitability and low risk. They have the characteristics of stable performance growth and broad space for development. These companies have always attracted the attention of many investors and have become a unique sector in the stock market. This paper firstly sort out literature review on impact mechanism between capital structure and firm performance, and then use 58 listed companies in China’s food and beverage industry from 2011 to 2015 as sample, meanwhile dividing the companies into high-growth and low-growth companies. Finally, the empirical test was conducted with fixed effect regression respectively. The empirical results show that there is a weak degree of negative correlation between asset-liability ratio and performance of listed companies in China’s food and beverage industry. It concludes that: China’s food and beverage companies prefer equity financing, failing to make full use of financial leverage, meanwhile there is a structural imbalance in the development of capital markets.
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