Study On Correlation Between Capital Structure And Business Performance Of The Coal Industry Listed Companies

The impact of the company's capital structure on the performance is mainly reflected in the adoption of the capital structure on the governance efficiency and thus to effect the company's business performance. The main purpose of empirical study in this thesis is that through this research in various indicators of capital structure impact on business performance, it can identify the capital structure variables significantly impact on the China's coal listed company business performance, then bring forward correlative suggestions optimizing the capital structure, and improving the business performance.On basis of expounding the capital structure correlative theory and business performance relevant indicators, Based on twenty-one coal listed companies data from 2005 to 2007 for the sample data, this thesis uses SPSS to a series of relevant indicators reflected business performance for factor analysis and obtains the comprehensive factor reflected China's coal listed company business performance, then takes this comprehensive factor as explained variable and some capital structure indicators as explanatory variables, applies Eviews to Regression analysis for selected indicators. The result shows that it is a positive correlation between the asset-liability ratio and the business performance of the sample company; a positive correlation between the ratio of largest shareholders and the business performance; no significant correlation between the proportion of circulation stock, the equity concentration and the business performance; no significant correlation between the company size and the business performance. Through the empirical result analysis, in order to optimize the capital structure of coal listed company and improve the business performance, it puts forward some relevant recommendations: according to the coal industry characteristic, it can improve the asset-liability ratio appropriately; perfect the proportion of large shareholder' shares; shield the interests of small shareholders; improve the level of financial management; strengthen the autonomy and so on.