A Study On Capital Structure And Company Performance Of The Listed Companies In Cultural Creative Industry

Looking through the academia, there have been lots of deep research on capital structureever since Modiglianni and Miller put forward the “MM” theory in1958. domestic andoverseas scholars have done rigorous and meticulous investigations on factor which affectcapital structure of listed companies, however, they haven’t came up with an unanimousconclusion. According to some of research outcomes, the relationship between the capitalstructure and operational efficiency will be changed rely on different industries. Therefore,the author does research on the relationship between the capital structure and operationalefficiency based on cultural creativity industry.The cultural creativity industry advances high speed development of modern industrydepends on its creative factors’ high level polymerization which have an effective function onoptimizing and upgrading the industrial structure as well as its economic and culturalperformance. The cultural creativity industry has become the strong strength which promoteseconomic development in China. All though the cultural creativity industry develops in a highspeed, yet it is still in a primary stage. Economically speaking, it needs to be organized undera reasonable structure, the high operational efficiency to promote it own development. In thispaper, the author does research on the relationship between the capital structure andoperational efficiency, points out valuable suggestions on how to maximize operationalefficiency in a company by adjusting its capital structure after empirical analysis.In this paper, it introduces research background and significance, reviews relatedreferences and theories, then analyses capital structure of listed companies refer to culturalcreativity industry in China. Finally, the author takes listed companies refer to culturalcreativity industry before2008as an example, analyses detail statistics from2008to2010(12quarters) by regression analysis. The research on capital structure situation of culturalcreativity industry is based on descriptive statistics methods, it is the background basis forfollowing empirical analysis. In the part of empirical analysis, the author selects a number ofindicators which affect a company’s performance as explanatory variables, takes the rate ofreturn on total assets on behalf of the company’s performance as explanatory variablesaccording to two components of the capital structure called debt structure and ownershipstructure to build several regression models. The studies results show that the asset-liabilityratio and operational efficiency of listed companies refer to cultural creativity industry inChina are in the negative correlation, and then the current debt ratio and operationalefficiency are in the positive correlation. Moreover, the nature of state-owned controllingshareholder and operational efficiency are in the negative correlation. In addition, the nature of controlling shareholder for legal and natural persons and operational efficiency are in thepositive correlation. In the last part of the paper, the author proposes methods to optimizeoperational efficiency of listed companies refer to cultural creativity industry based onprevious research outcomes as well as current research conditions.