Proceedings of the 2025 10th International Conference on Modern Management, Education and Social Sciences (MMET 2025)

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Research on the Impact of Financing Structure on Enterprise Valuation

Authors
Jincheng Jia1, Weiran Sun2, *
1Tianjin Fayao High School, Tianjin, 300000, China
2Beijing -Dublin International College, Beijing, 100124, China
*Corresponding author. Email: sunweiran@emails.bjut.edu.cn
Corresponding Author
Weiran Sun
Available Online 11 November 2025.
DOI
10.2991/978-2-38476-475-4_124How to use a DOI?
Keywords
Financing structure; Enterprise valuation; Venture capital
Abstract

Corporate valuation is a crucial aspect in decision-making for many investment institutions and has received widespread attention. Previous valuation models have focused on the impact of cash flow, stock price, and price-to-earnings ratio on corporate valuation, which overlooks the influence of financing structure. Financing structure is an important indicator reflecting a company’s financial condition. It can help assess the operational status of a company, thereby enhancing the accuracy of valuation. This paper studies the impact of financing structure on corporate valuation using data from 400 non-financial companies listed on the NASDAQ, NYSE, and Euronext in the United States from 2018 to 2022. The study employs an OLS model to investigate the linear relationships between venture capital (VC), private equity (PE), debt financing, and equity financing with Tobin’s Q and price-to-book ratio. The results show that an increase in VC and PE financing significantly boosts corporate valuation, while an increase in debt and equity financing tends to lower it. Heterogeneity analysis reveals that VC and PE have more pronounced effects on startups, whereas mature companies should be wary of the negative impacts of debt financing. This research provides a theoretical basis for optimizing corporate financing structures and offers new perspectives for market participants.

Copyright
© 2025 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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Volume Title
Proceedings of the 2025 10th International Conference on Modern Management, Education and Social Sciences (MMET 2025)
Series
Advances in Social Science, Education and Humanities Research
Publication Date
11 November 2025
ISBN
978-2-38476-475-4
ISSN
2352-5398
DOI
10.2991/978-2-38476-475-4_124How to use a DOI?
Copyright
© 2025 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

Cite this article

risenwbib
TY  - CONF
AU  - Jincheng Jia
AU  - Weiran Sun
PY  - 2025
DA  - 2025/11/11
TI  - Research on the Impact of Financing Structure on Enterprise Valuation
BT  - Proceedings of the 2025 10th International Conference on Modern Management, Education and Social Sciences (MMET 2025)
PB  - Atlantis Press
SP  - 1124
EP  - 1134
SN  - 2352-5398
UR  - https://doi.org/10.2991/978-2-38476-475-4_124
DO  - 10.2991/978-2-38476-475-4_124
ID  - Jia2025
ER  -