The Impact of Capital Structure on Corporate Performance of Domestic Listed Non-Bank Financial Enterprises

This study explores the relationship between capital structure and corporate performance in the non-bank financial industry. By analyzing non-bank financial firms across multiple regions and industries, it is found that capital structure generally exhibits a negative correlation with corporate performance. As the debt-to-asset ratio increases, the net return on assets decreases. The empirical results show that the negative correlation is particularly evident in the eastern regions, remains significant in the western regions, but is no longer significant in the central regions. For state-owned enterprises, a moderate increase in debt can enhance corporate performance to some extent, whereas for private enterprises, a moderate reduction in debt can promote corporate performance. Based on these findings, this paper proposes corresponding policy and practical recommendations to optimize capital structure investment, improve corporate performance, and promote the sustainable development of the industry.