Empirical Study On Dependence Between Capital Structure And Business Performance Of Chinese Retail Industry Listed Companies

The effect of capital structure of corporation to value of company demonstrates thatthe company influences the structure efficiency of company by capital structure, thenachieve the goals of financial performance. I tried to find out the variable of capitalstructure which obviously effect the financial performance by comparing the affectsof every target, then optimize the capital structure of retail business and promotebusiness Performance. It is also the main target of the empirical study.This paper use Tobin’s Q to reflect the business performance of listed company anduse debt asset ratio、rate of short debt on assets、rate of long debt on assets、stock rightdegree of concentration、the holding proportion of first large shareholder、rate ofcirculation stock to reflect capital structure. I discovered that debt asset ratio hasnegative correlation to business performance, stock right degree of concentration haspositive correlation to business performance, the holding proportion of first largeshareholder and rate of circulation stock has not an obvious correlation to businessperformance by lining the date from2005—2008of45listed companies which listedbefore2000. At last，some strategies are suggested for optimizing the capital structureof retail business and promoting business performance by explanation of the resultsof the empirical study.