The Capital Return Ratio Calculation And Profits Analysis Of Industrial Manufacturing Enterprises In Shandong Province

Studying the capital return ratio of China is a hot topic. However,most of the results are based on the whole nation and not on oneorganization or one area. Shandong province is an important economicprovince of China. With the development of the economy, the GDP of Shandongprovince has remained ahead of all the provinces. Manufacturing industryhas dominated the industry of Shandong province. So, it is very importantto analysis the capital return ratio and profits of industrialmanufacturing enterprises in Shandong province.This article selects40sample listed companies’ data of industrialmanufacturing enterprises in Shandong province from2007to2012. Theresearch treats the ROE and ROA as the core indicators, selects themulti-angle research variables and analyzes240sample panel data. Theempirical results show that assets-liability ratio and capital returnratio are in negative correlation, employee compensation, machine growthratio, the number of technical staff and capital return ratio are inpositive correlation respectively, ownership concentration and capitalreturn ratio are in U-shaped correlation. So the profits sources ofindustrial manufacturing enterprises in Shandong province come from therelatively low assets-liability ratio, the investment of human capital,technology capital and fixed assets, reasonable ownership structure.The article is divided into six parts. The first part is theintroduction of the background and the significance of the issue. Thesecond part is the literature review and theoretical basis. It reviewsthe results about the capital return ratio and Du Pont Analysis System,summarizes the cost-benefit theory and value creation theory. The thirdpart talks about the research method and research design. It includes theselection of sample data, design of variate, research hypothesis and thestudy models. The fourth part is descriptive analysis and model test. It includes the F test and Hausman test. The fifth part is empirical resultsand analyses. The article analyzes the model regression by EViews6.0.The sixth part is conclusion and suggestion. The author makes a conclusionby issue researching and result analyzing, searches for the profitssources of industrial manufacturing enterprises in Shandong Province. Thearticle suggests that the enterprises should control the assets-liabilityratio, broaden the finance sources and invest more human capital,technology capital and fixed assets on the base of reasonable ownershipstructure.By accomplishing the article, the author deeply feels the importanceof the calculation about the capital return ratio and profits resourcesabout one area, such as Shandong province. The innovation of the articleis the selection of research object and index and the improvement ofresults. However, the article also has some limitations because of theauthor’s limited ability. This topic should be widely concerned byscholars in the future.