Empirical Analysis Of The Relationship Between Capital Structure And Profitability

Listed company’s contribution to regional economic development is particularly important, it is compared with the non-listed companies in the region has a relatively advanced management ideas and better management system and financial system, the economic development of the region has played a large part the lead role, so when issues related to local economic development research, local listed companies can not be ignored, and the main focus of the study.Modern corporate finance theory suggests that corporate capital structure decisions is more important concept, it is a measure of an important indicator of corporate financing decisions are reasonable. Factors that affect the capital structure in addition to macroeconomic factors such as GDP growth, as well as corporate profitability, growth factors and industry factors such as microscopic. When companies raise financing, they often are based on the profitability of current business conditions and carried out, in other words, to reflect the profitability of listed companies impact on the status of some of the indicators is how to raise the financing it, how based on corporate earnings status ability to make decisions capital structure, so the research relationship profitability of listed companies and capital structure becomes more important.In this paper, Tianjin 36 listed companies as the research object, select the asset-liability ratio as an indicator of capital structure on behalf of a listed company, select ROE, return on total assets, earnings per share, net assets per share, sales margin, sales gross margin, operating margin and total asset turnover ratio as an indicator of profitability on behalf of the relationship with the principal component regression analysis studied the capital structure of listed companies and the profitability, capital structure and linear expressions derived profitability, then according to Empirical analysis concluded:proportional to the asset-liability ratio of these five indicators and ROE, return on total assets, sales margin, operating margin and total asset turnover, and earnings per share, net assets per share and sales the gross profit margin is inversely proportional to these three indicators, in addition, to some extent, the use of tax-deductible role liabilities. Finally, according to the results of empirical analysis, combined with a descriptive analysis of conclusions, how to rationalize the capital structure of listed companies and other recommendations.