On The Capital Structure And Business Performance Of The Listed Companies In The Textile Industry

The correlations between capital structure and business performance in textile companies have been a controversial topic. Both the domestic and the foreign scholars have done researches in multi-industry, multi-regional even multi-country areas, but the conclusions based on the actual data are so various, even diametrically opposite. Since this study is so significant for economical decision-making in the application area, it is very important to identify the regularities of the correlations between capital structure and business performance in the textile industry. It will play a crucial role in guiding the listed company to optimize the capital structure, enhance the capital efficiency, speed up the industrial restructuring and improve business management.Compare to other companies, the textile listed companies are still at the disadvantage level in management standards, earnings level and technological innovations. But the textile industry is so crucial that is beneficial to the people's livelihood. It has solved lots of labor employment problems and it is an important export industry. Faced with the economic fluctuations, the United States and Europe's anti-dumping and trade protection pressure, the textile industry is slack and fragile. Therefore, the states promulgated the"Restructuring and revitalization of the textile industry" rules to require active efforts of the companies to seek effective ways to solve their industry, technology and financial problems. Meanwhile, the government should support the companies in the policy, benefit and guidance aspects.On this occasion, this paper aimed to solve the listed companies'problems in how to optimize the debt financing structure, select ownership structure in a rational scale and build internal financing management system. It has great value for the restructuring and revitalization of textile industry.On the basis of the conclusion, the structure of debt financing is very irrational; the listed companies should improve the performance of portfolio flexibility through diversified debt financing combinations, reduce short-term liabilities ratio and enhanced mobility of capital. The concentration of ownership has positive influence to management performance, so it is essential to increase the ratio of major shareholders, avoid dispersion of ownership to encourage minority shareholders make decisions for the company, and thus improve the management standards. Based on the stable industry, the textile companies should strive to develop the leading industry, enhance the overall profit margin, improve the business credit and strengthen the capacity of inter financing.