Research Article
The Influence of Enterprise Financing Structure in China on Business Performance—Simulation Analysis Based on the System Dynamics
@INPROCEEDINGS{10.1007/978-3-030-72795-6_58, author={Chenggang Li and Jun Wan}, title={The Influence of Enterprise Financing Structure in China on Business Performance---Simulation Analysis Based on the System Dynamics}, proceedings={Simulation Tools and Techniques. 12th EAI International Conference, SIMUtools 2020, Guiyang, China, August 28-29, 2020, Proceedings, Part II}, proceedings_a={SIMUTOOLS PART 2}, year={2021}, month={4}, keywords={Enterprise financing structure Business performance System dynamics Simulation analysis}, doi={10.1007/978-3-030-72795-6_58} }- Chenggang Li
Jun Wan
Year: 2021
The Influence of Enterprise Financing Structure in China on Business Performance—Simulation Analysis Based on the System Dynamics
SIMUTOOLS PART 2
Springer
DOI: 10.1007/978-3-030-72795-6_58
Abstract
Enterprise financing structure has an impact on the profitability and solvency of the enterprise to some extent, which is also called the influence on business performance. Enterprise managers and scholars have always focused on the influence of enterprise financing structure on business performance. This paper selects the data of the listed companies from 2010 to 2018, uses the method of the system dynamics, constructs the system dynamics model of enterprise financing structure, and simulates and analyzes the influence of equity financing and debt financing on enterprise business performance. The simulation shows: (1) Equity financing has an active impact on the rate of total assets and scale, while a negative impact on asset liability ratio. (2) Debt financing has an active impact on the rate of total assets, liability assets and scale. (3) Between the two external financing, the influence of equity financing on the business performance is better than the debt financing’s.
