The study aims to explore how the capital structure of Taiwanese construction stocks before and after the U.S. interest rate hike affects their corporate performance. This article have observed that rising interest rates in the United States will increase the cost of borrowing for companies, which may reduce their profitability and affect investors’ evaluation. In order to verify whether this effect is the same in the Taiwan market and the role of capital structure, this study analyzes the relevant data of Taiwan-listed OTC construction stocks from 2022 to 2023 using the US interest rate hike as an event to explore the impact of capital structure on stock compensation and corporate performance after interest rate hikes. The empirical results of this study show that: (1) There is a significant positive abnormal return of the company's stock after the interest rate increase. (2) The company's performance decreased significantly after the interest rate hike. (3) The capital structure after the interest rate hike has a significant positive impact on the company's performance. (4) The capital structure after the interest rate hike has a significant positive impact on the abnormal return of stocks.