The Research On The Capital Structure And Operating Performance Correlation In Paper Listed Companies

Paper industry plays a important role in promoting employment and driving China’s economic growth. However, in recently years, the development of the paper industry has entered a difficult period because of the international economic situation and domestic economic situation are both downing.The development and growth of the corporation are the result of the interaction of many factors. The capital structure is one of the most important factors among them. The capital structure is reasonable or not will directly affect the anility of making profit of the company. In view of this, this paper will first have a depth study in the relationship between the paper industry’s capital structure and performance.and then investigate that whether an optimal capital structure exist or not that can make the maximized profit to the corporations.In this paper, We firstly define the concept of the capital structure and corporate performance, and then have a detailed review of plentiful theories about the relationship between capital structure and corporate performance. Subsequently, we have a analysis of the whole level of the development of China’s paper industry and the current problems which the paper industry is facing. After this, we select22listed companies’financial data for samples to do a detailed descriptive statistical analysis. The conclusion shows that there are a lot of problems in the listed companies of paper industry.like high levels of asset-liability ratio, irrational debt structures, the large proportion of current liabilities and so on. Apart from this, the corporate performance has a considerable fluctuations in different years.In order to study the relationship between the capital structure and corporate performance in detail,we use the sample data from the paper industry listed companies to do empirical empirical analysis with the help of Statistical Analysis Software. In the choice of the dependent variable about company performance indicators, I do not select the traditional single indicators, but select a more objective and comprehensive indicators which calculated by the method of factor analysis. Taking into account that the capital structure indicator contains two factors,1select the asset-liability ratio, interest-bearing debt ratio, share capital concentration. shareholders nature as a reflection of capital structure indicators.The empirical analysis part uses the method of linear regression and curve regression.the conclusion can show the short-term and long-term analysis results. The short-term analysis conclusion shows that the corporate performance and asset-liabilities ratio is a negative correlation;the relationship between corporate performance and interest-bearing debt ratio is not clear. The long-term analysis conclusion shows that the relationship between corporate performance and asset-liabilities ratio is monotonically decreasing, this relationship can be described by quadratic curve or cubic curve. Theoretically there is not existing a optimal capital structure can make the largest profit. Reduce the asset-liabilities is the only way to improve the corporation performance.Finally, combined with the empirical analysis conclusions and the actual development of the paper industry, the author puts forward some suggestions include business management,business development and capital structure in order to promote the development of China’s paper industry.