An Empirical Study On Improving Operation Performance Based On The Perspective Of Capital Structure

As an important pillar industry of the national economy in China, automotivemanufacturing is related with the development of steel, electronic and other industr ies.In recent years, Chinese automobile industry has made brilliant achievement andsignificant progress, and China has been the biggest automobile production and salescountry in the last four years. Capital structure influences capital cost and governancestructure of listed companies directly, and then influences their operation performance,even relates to the economic growth and stability of a country or region. In view ofthis, it will be with the theoretical value and practical significance to explore themeasures of the capital structure optimization, and then to improve operationperformance by researching the impact of capital structure on operation performancein the listed automotive manufacturing companies.Based on absorption and integration of results of previous, this thesis makeslisted automobile industry corporations as the research object, and researches theimpact of capital structure on operation performance through empirical method.Because of the strong correlation between operation performance indicators, so14indicators chosen have been reduced dimensions through Principal componentanalysis method. Further the impact of capital structure on operation performance hasbeen explored using multiple linear regressions. The empirical results show that:asset-liability ratio and the largest shareholder share proportion are negativelycorrelated with operation performance, company size and company’s growth arepositive negatively correlated with operation performance, circulation stockproportion is not significant correlated with operation performance. Finally, accordingto the above findings, countermeasures and suggestions of the optimization of capitalstructure are proposed in both macro-environment and company management. It ishoped to provide theoretical support to management and to improve operationperformance in listed automobile industry corporations.