The Study On The Correlation Between Capital Structure And Operating Performance Of The Listed Environmental Protection Company

The Twelfth Five-Year Plan Outline for the People’s Republic of China national economic and social development, hereinafter referred to as the" Twelfth Five-Year Plan", is the programmatic document, which is published in our critical period of building a moderately prosperous society, deepening reform and opening up, accelerating the transformation of economic development. "Twelfth Five-Year Plan"clearly pointed out:we must build a resource conserving, environment-friendly society by vigorously developing circular economy, strengthening environmental protection and promoting the ecological protection and restoration measures. Therefore, in recent years the environmental protection industry related enterprises obtained the unprecedented development space. Although the environmental protection industry is a special industry, its vigorous development is inseparable from the policy support, but the capital structure factor is still one of the most important factors affecting their related businesses development and growth. So thoroughly investigate the relationship between China’s environmental protection industry related business capital structure and operating performance, is not only beneficial to improve the capital structure of the environmental protection industry related businesses, but also improve their operating performance levels, so as to enhance the market competitiveness.Combined with the actual situation of our country’s capital market, based on the analysis of capital structure and operating performance-related theories, this article selects environmental protection industry in our country the listed company as a research object. And the article does in-depth research of the relationship between the listed company’s capital structure of Chinese environmental protection industry and operating performance to provide a theoretical basis for improving the capital structure of listed companies in the environmental protection industry and their operating performance level. This paper is structured into the following five sections:The first part is an introduction. Mainly introduces the background and significance of research ideas and methods, and analyzes the innovation of this paper and weaknesses.The second part is an overview of the related theories. After summarizing capital structure and the operating performance related theories-separately, we summed up the current scholars’ research conclusion about their relationship.The third part is the situation analysis, using the selected 31 sample companies related data in recent three years, to analyze current situation of our country’s environmental protection industry listed company capital structure from the ownership structure and debt structure, then analyze the operating performance current situation of listed companies in Chinese environmental protection industry from the solvency, growth, profitability, and operational capacity.The fourth part is the empirical analysis. Due to the environmental protection industries, many of which set up not long, shorter time to market, so this paper selected 2011 to 2013 quarterly data from 31 environmental protection enterprises whose time to market is before the first quarter of 2011 for empirical analysis. First select the 10 indicators in four aspects from the operating performance measure, namely the current ratio, the quick ratio, revenue growth, earnings per share, annualized return on equity, total assets annualized net profit margin, sales margin, mobile asset turnover, accounts receivable turnover ratio, total asset turnover, using SPSS statistical software for the principal component analysis, with fewer targets to replace the original more targets, a more intuitive expression of performance operating performance (ROA) as operating performance variables. Then select the asset-liability ratio which is accepted and adopted by widely scholars as the capital structure variables. Bring in the company size, asset structure and ownership structure as control variables. Construct a simultaneous equations model, then empirically test the interaction between the capital structure of environmental protection industry listed company and operating performance. Finally, we prove once again the correctness of the conclusion and the model through the robustness tests.The fifth part is research conclusions and policy recommendations. Combining theoretical analysis and empirical results of this test, we get the results, and finally put forward the policy advice which can optimize the environmental protection industry listed company capital structure and improve operating performance level.