The Impact Of Capital Structure On Profitability Analysis In Electronic Equipment Manufacturing Listed Companies

As the listed companies become more and more in our country, they have greateffect on our economic growth. Therefore, it is very important to study the impact ofcapital structure on profitability analysis of the listed companies.In this paper, three multivariate statistics analysis methods have been presented.They are the Principal Components Regression, the Canonical Correlation Analysis andthe Partial Least Squares Regression. These methods have been used for finding out therelation between capital structure and profitability with the financial data of2012by IBMSPSS19.0. In order to entirely reflect the capital structure and the profitability of listedcompanies, many indexes have been introduced. This is different from other papers.Thispaper includes five parts. The preface includes the topic and the significance ofthis study, the content and structural arrangements, and innovation of this paper andshortcomings. The first chapter introduces some theories which are related to this paper.It consists of the concepts and metric of capital structure and profitability, and therelationship between capital structure and profitability. The second chapter contains theintroduction of analysis methods and data processing. The third chapter is an empiricalanalysis about the impact of capital structure on profitability in electronic equipmentmanufacturing listed companies. This includes the process of Principal ComponentsRegression, the Canonical Correlation Analysis, the Partial Least Squares Regression,and the comprehensive analysis. The forth chapter is about the conclusions andsuggestions.The research shows that the profitability and liquidity of assets is positivelycorrelated in electronic equipment manufacturing listed companies, that is, the moreliquidity of enterprise assets, the better of the profitability. And the profitability isnegative with liabilities in general. The productivity of capital assets is low, and someassets have been wasted. The structure of assets and liabilities is not rational. Many listedcompanies prefer short-term debt rather than long-term debt. Therefore, in order tooptimize the capital structure to improve profitability, listed companies should take somemeasures. Firstly, increase their total assets turnover. Secondly, use rational debt structure. Thirdly, enhance their management capacity of enterprises, especially to improve thequality and efficiency of management operators. Fourthly, increase business innovation,and improve enterprise innovation. Fifthly,improve the financing environment and thefinancing structure.