The Impact of Capital Structure on the Financial Performance of A-Share Manufacturing Listed Companies

In terms of financing decisions, capital structure refers to the proportion of equity capital and debt capital in a firm, which influences its financing costs, financial risk, and profitability. By examining the link between capital structure and corporate performance, this paper analyzes the debt financing of A-share listed manufacturing companies. Based on this analysis and relevant capital structure theories, the study utilizes literature review, case analysis, and inductive approaches to examine how debt financing scale and debt maturity structure affect corporate financial performance. The results indicate that moderate debt financing can enhance firm performance through tax shield and financial leverage effects; however, high debt levels increase interest burdens and bankruptcy risks. In addition, a high proportion of short-term debt intensifies liquidity pressure, while a balanced long-term debt structure better fits the long-term needs of fixed asset investment in manufacturing. Based on these findings, the paper further proposes four pathways for optimizing capital structure, including debt scale optimization, debt structure adjustment, diversification of financing channels, and establishment of risk control mechanisms, to help manufacturing enterprises reduce financial risks and improve operational performance.