The Capital Structure And Profitability Of Listed Companies In Hebei Province

This paper selects 28 listed companies in Hebei Province as the research objects.It analysis the relationship between capital structure and profitability of the listed companies of Hebei Province,by multi-linear regression,using principal component regression.The purpose of this research is to find the problems and inadequacies by the relationship from empirical analysi between capital structure and profitability of Hebei province's listed companies deriveds,and combining their tatus. It proposed some appropriate solutions and measures against the status,in order to speed up the development of listed companies in Hebei Province and contribute my efforts to Hebei Province'progress and living standards.First of all, this paper collects and reviews relevant research at domestic and abroad, and then synthesis and analysis them. It introduces the basic theory of capital structure, explain the evaluation indicators and methods of capital structure and profitability, and make a brief overview about their relationship.It is a theory to guide follow-up study in the latter.Secondly, the paper descrips and analysises the current situation of the capital structure and profitability of the listed companies in Hebei Province, analysises and comparise them using large amounts of datas and information, in order to find problems and relationship between the two financial indicators.Thirdly, this paper uses the well-known statistical analysis software SPSS13.0 and analysis the data of 28 listed companies during 2005 to 2008 in order to carry on principal component regression analysis by selecting variable and sample, proposaling supposes, constructioning a multi-linear model., It summarizes multiple linear formula by selecting capital structure as explanatoried variables and profitability as explanatoried variables. The formula show that capital structure and some profitability indicators is a direct proportion relationship, while some of them is a Inverse proportion relationshi, and in the end, it analysis the results.Finally, on the basis of the analysis about the status of the capital structure and the profitability of the listed companies in Hebei province,and the empirical research about their mutual relations, this paper propose some solutions and measures to optimize capital structure and improve the profitability of listed companies in Hebei Province, responsing on the current situation and existing problems.It's purpose is to provide more feasibility concludes, and stimulate the development rapid of economic in Hebei Province.