Is it really true that debt financing has no advantage at all, the lower of asset-liability ratio the better and debt financing is the last way for the enterprise? In this paper the enterprise s debt financing problems are discussed in detail from the relationship between the financial structure and enterprise governance structure, between the financial .

Left in its range, and enterprise asset-liability ratio was a positive correlation between performance; the right, in its range, and enterprise asset-liability ratio was a negative correlation between performance; in the optimal asset-liability ratio of the range of about adjacent, asset-liability ratio and corporate performance should be no significant correlation between.

Asset-liability ratio is used to describe the capital structure, and the General financial performance, Tobin’s Q and the EVA per capital are used to describe the firm performance respectively.

Using annual data from 75 technology companies listed in Shanghai and Shenzhen Stock Market,it analyzes the factors which affect the debt-equity ratio.

With the study of corporate capital structure theory and corporate governance structure theory and the analysis of the present inside and outside operating environment for SOEs, this paper points out that the weak constraint from the creditor and the serious internal control of manager lead to the high debt-equity ratio.

Assets-liability ratio reflects the comparative scale of an industrial enterprise of assets-liability ratio and it is a significant indicator of the risk that a creditor takes in his assets management.

First,using regression method analyzed the relationship between ratio of debt asset and profitability,concluded that the relationship between them is negative correlation.