The Study On Correlation Between Capital Structure And Operating Performance Of China Listed Company

The research on the relationship between capital structure and company's performance is always the hot topic of domestic and abroad capital structure research. During the correlation study, the majority of scholars are taking a single ownership structure or debt structure to proceed, ignoring the other factor's impact on the operating performance. While conducting this empirical study, the relevant indicators of ownership structure and debt structure are considered together to study their impact on performance, which can play a role in a comprehensive analysis. It can provide theoretical guidance to the optimization of capital structure and improving business performance. And in the past study, few scholars choose the Net Operating Cash Flow as performance measurement indicators; this paper tries to do it to enrich the study.Article mainly empirical study supported by standard methods, combined with the reality of business and real financial data, using financial, management, measurement, mathematics and many other knowledge to research the capital structure and operating performance. In this paper, asset-liability ratio is chosen to reflect the company's capital structure, net profit to total assets ratio and net operating cash flow indicators are chosen to reflect the performance of listed companies on the Shanghai Stock Exchange in 2006-2008,and then, do regression analysis of correlation between capital structure and operating performance, Now that some foreign scholars take the idea that existing optimal range capital structure, this paper trying to verify it is also applicable to China's listed companies. But the empirical analysis showed that the Chinese listed companies do not have the optimal range of capital structure, meanwhile capital structure and business performance is significantly negative correlated.The research on capital structure and operating performance of listed companies is practical guided on the correct choice of capital structure of listed companies. Hope that this article can play a positive role in the choice in capital structure of domestic enterprises.