A Mutual Relation Investigation Between Capital Structure And Operation Performance In Public Companies For Energy Industry

The capital structure t has been a core issues in the theoretical study of corporate financial management. The central theme of the capital structure, no matter the theoretical research or empirical research, is committed to the relationship between capital structure and corporate value. In the course of research , scholars drawn different conclusions due to different depending on theories, choice of samples, methods used, observations drawn from different industries. Some results indicate that: capital structure and operation performance showed a positive correlation; Performance and financial leverage ratio based on the book value calculation showed a positive correlation. Some of the results indicate that: capital structure and operation performance showed a negative correlation; profitability is also a significant inverse relationship with debt ratio.This paper is to optimize capital structure of energy listed companies and improve operation performance for research purposes, trying to combine the energy industry and energy characteristics of the capital structure of listed companies as well as the status of performance, using the system estimation methods, namely, the establishment of simultaneous equations , and the samples for the financial and corporate governance structure data in Shenzhen and shanghai Exchange's 58 energy listed companies. This paper tests the interaction between company's capital structure and corporate performance and concludes that: there is a mutual relationship between capital structure and operation performance, namely a inverted "U"-type is for the capital structure vs operation performance and there is a negative relationship between operation performance and capital structure.This paper is divided into three levels:The first level is the basis of the whole investigation, which introduces the theoretical and practical background, research contents and methods, the theory review of the capital structure and corporate performance in domestic and foreign, as well as the revelation for this study, including the first and second chapter in this paper.The second level is the core of this investigation, and mainly an empirical analysis for mutual correlation between capital structure and operation performance in listed companies for energy industry .After defining the meaning of the research subjects, scientific sampling, descriptive statistics of variables and HAUSMAN test, I obtain a specific conclusion of the degree and way of mutual influence between the two by using the least squares method in piecewise for processing the sample data, which constitutes the content of this study in chapters there and four. Based on the results of the study, the third level taking more in-depth analysis advances the referenced Countermeasures and suggestions for perfecting capital structure and enhancing operation performance in practice for listed companies of energy industry, which mainly is the fifth chapter of this study.