The Research Of The Relationship Between Capital Structure And Development Of Power Industry Listed Company

The power industry is China’s economic development is the most importantenergy industry, is the country’s economic development priorities and advance theindustry, the standard of living for our people to provide a guarantee. With the globalmacro-economic conditions for the integration of high-speed development, China hasbecome the world’s second largest economy, the concept of market economy reformsincreasingly valued by the people. China’s electric power industry also needs a majorchange with the economic development and market-oriented reform of the electricitybusiness is undergoing. Since the electric power system reform, China’s power industryhas developed rapidly, completed by the high consumption, high pollution, industrialdevelopment model towards a new phase of large power grids and high automation.With the reform of the power sector, the government’s support of diminishing greatlyimproved corporate demand for funds, prompting a large-scale listed company to makethe necessary debt financing, resulting in corporate balance rate, China’s powerindustry, this phenomenon promote sustainable development strategy deviates.Reasonable capital structure of listed companies the largest value of financialsecurity goals and intrinsically linked, this is related to the sustainable development ofcompetitive enterprises and industries. Scientific capital structure will not only avoidthe risk of liability arising can also use financial leverage to improve earnings per share,so that enterprises in a lower level of financial risk, and can efficiently maximizeenterprise value. Research enterprise development ability not only to invest in scienceand accurately reflect the value of the enterprise’s development potential and valueinvestors, but also enables companies to truly recognize the irrationality of their capitalstructure, which can improve the enterprises in the industry competitive advantage, andthus enhance the electric power industry in the world market economy, competitiveadvantage.Research on capital structure and profitability of the power industry more, andless about the company’s capital structure theory research and development capacity of China’s power industry listed, the paper industry to make up for the gaps in the capitalstructure of the electricity research and development capability, with theoreticalsignificance and practical significance. In this paper, a listed company of China’spower industry as the research object, its starting point for the study of thedevelopment of the ability to conduct empirical analysis of capital structure anddevelopment capabilities.This study is based on listed companies in China’s power industry as the basis forChina’s power industry in Shanghai and Shenzhen listed companies as the researchobject, first through descriptive statistical analysis of capital structure and developmentof the ability to conduct a preliminary analysis of the industry, and then to carry out itsrelationship capital structure empirical research and development capabilities, toexplore China’s power industry capital structure of listed companies are effectivelyinfluence the long-term development of enterprises, from the perspective of the capitalstructure of China’s power industry to adjust financing decisions of listed companies topromote their own energy scientific enterprise to raise the capital required to makeappropriate and efficient decision-making, thereby enhancing the long-term viabilityand achieve sustainable development. Firstly, the capital structure and the ability todefine and develop the theory are discussed, as well as provide a reliable theoreticalbasis for research. Secondly, by comparing the status quo of China’s power industry,both domestic and foreign financing of listed companies, analyzes the capital structureof listed companies, and the impact of our capital structure of listed companies on thedevelopment capacity of the electric power industry has made an overall analysis.Once again, the power industry in Shanghai and Shenzhen-listed51companies for thestudy, analyzed samples of the capital structure and development capabilities, and toconstruct a multiple linear regression analysis model, and then to China’s powerindustry,51of the capital structure of listed companies on the development capacityEmpirical analysis of impacts. Finally, in51of China’s electric power industry, thecapital structure of listed companies in the empirical analysis and developmentcapacity, China’s power industry is proposed to optimize the capital structure of listedcompanies countermeasures and suggestions to improve the company’s development capabilities.