The Industry Differences Research Of Relationship Between Capital Structure And Profitability Of Listed Company

Related research about capital structure theory has been the focus of domestic and foreign scholars, which caused widespread concern for a such long time.A reasonable capital structure has an important influence to the profitability of the enterprise value, although many studies the relationship between capital structure and profitability so far have been, but the theory and there are different empirical findings, the relationships between capital structure and profitability of different industries are the existence of differences, with the introduction of industrial organization theory, it is necessary to study the relationship between sub-industry capital structure and profitability and to explain the reasons for the different industry enterprises make better capital structure decisions, and improving profitability.In this paper, based on the related theories and previous studies, capital structure and profitability on 2009-2013 data selected listed companies in China nine major sectors as research subjects for statistical analysis and empirical research. First, from the perspective of multiple indicators analyzed differences in the capital structure of listed companies in the industry and profitability between the status quo and industry. Second building econometric models, take multiple linear regression analysis examined the relationship between the different sectors separately listed company’s capital structure and profitability, draw a regression equation, and use Chow test to verify the relationship between the industry is the existence of structural differences. Finally analyze and summarize the reasons for the different relationship, and make recommendations.By the conclusion of the study are:the capital structure of listed companies in China’s securities market, profitability, and the relationship between the presence of all the differences between the industry, real estate, financial services, wholesale and retail trade of listed company’s capital structure and profitability There was a positive correlation, while agriculture, forestry, animal husbandry, fishery, pharmaceutical manufacturing and the automotive industry was negatively correlated. This is due to the inherent differences in the profitability of the industry, the level of competition, liability structure, ROE caused by the indifference point. Enterprises in the capital structure decisions, from their own environment in which the industry view, choose the most suitable for this industry, the own company’s capital structure.