The Impact of Corporate Capital Structure on Financial Performance Based on Convolutional Neural Network

Abstract

Capital structure is an important indicator to measure the source, composition, and proportion of a company’s equity and debit capital. It is not only related to the internal operating environment of listed companies but also related to the rights and obligations of shareholders and is closely related to the company’s future development direction, decision-making bodies, and changes in governance structure. This study aims to study the impact of corporate capital structure on financial performance based on convolutional neural network. Based on the relevant theories of capital structure, by constructing a convolutional neural network model, taking a listed company as the research object, this study analyzes the company’s capital structure, liabilities, and other financial conditions. Finally, it is concluded that short-term liabilities can meet the company’s sustainable development and enhance the competitiveness of the industry, thereby increasing the company’s operating income. However, a poor capital structure can negatively impact a company’s finances. By improving the corporate governance structure of listed companies, strengthening the adjustment of the financing structure of listed companies, and strengthening the management of listed company’s operating risks, the company’s capital structure can be improved so that the company’s financial situation can be sustainable and healthy.

Social Capital, Financial Capital, and Entrepreneurial Orientation: Keys to Performance in Indonesia’s MSME Clothing Industry

“…One article notes that financial capital is often guided by its real counterpart, meaning that it can influence the direction of the business (Dinets et al, 2020). Another study found that the impact of corporate capital structure on financial performance can be studied using convolutional neural networks (Luo & Jiang, 2022). Managing financial capital is important for the long-term success of a business.…”

“…A quantitative design is suitable for this research because it involves collecting numerical data that can be analyzed statistically. This type of design is useful for testing hypotheses and determining the relationships between variables (Luo & Jiang, 2022). The four constructs that are being measured in this research are social capital, financial capital, entrepreneurial orientation, and performance.…”

“…Apart from being able to strengthen the arguments and findings of previous research, this research can also be complementary. The study by (Luo & Jiang, 2022) shows that social capital positively influences business performance among SMEs. However, the study does not explore the specific mechanisms through which social capital affects performance, leaving a research gap in this area.…”