Empirical Study On Dependence Between Capital Structure And Business Performance Of Electric Listed Company

According to the capital structure theory, when company's assets earning ratio ishigher than the debt capital cost proper to increase in debt to raise its businessperformance, when company's assets earning ratio is lower than the debt capital costproper to decrease in debt to reduce losses. So if company conscious to debt managing,debt rate and business performance should present the positive correlation. This text chooses electric listed company as samples, analyzing the dependencebetween capital structure and business performance by empirical study, and finding thatthe correlation between capital structure and business performance is unobvious. Itproves that the listed company has not been conscious to improve the businessperformance through managing in debt. And has put forward the countermeasure andsuggestion to the question that is found in the analysis.