An Empirical Research On Capital Structure And The Corporate Performance Of Cultural Industry Listed Companies

It is universally acknowledged that capital structure is an important financial decision. The effect of capital structure especially debt financing on corporate governance have always been the focus of academic research. In this regard, based on mature capital market and complete corporate governance mechanism, Western developed countries started research on the governance effect of capital structure early, and have now become gradually mature both in theoretical and empirical research; yet the domestic research in this regard started relatively late and have not reached a conclusion. On the other hand, with the all-round development of the national economy and culture, the change of people’s lifestyle and the way of thinking, the rising of culture industry has received attention from all over the world and is even regarded as one of the crucial indexes to measure our country’s economic development. However, because our lateness and changes of policies, the culture industry and enterprises in our country have traversed an unusual path, making the listed companies different from other industries in financing methods, capital structure, financial decision and so on. So far, the culture industry has not reached a mature period with little listed companies whose business patterns especially financial patterns are immature. Under this background, based on the current preferential cultural policies, this paper takes samples of the relevant data of the listed companies in the culture industry from2008to2013, explains the unique characteristics of the influence the listed companies have on their performance, hoping to enlighten companies in culture industry and promote the development of this industry.This paper resorts to the factual situation of the listed companies in the culture industry and the existing research results, follows a main line of introduction—relevant theory analysis—analysis of the current capital structure of the listed companies in the culture industry--empirical analysis—policy suggestions. It mainly consists of the following five parts:The first part is introduction. It introduces the research background, research significance, the relevant literate review of domestic and abroad researches, and then introduces the research thinking and methods of this paper and finally the innovation and shortcoming of this paper.The second part is the analysis of relevant theories. It first gives definition to some relevant concepts; then reviews the famous structure theories both at home and abroad which are the base of this research; analyzes several corporate performance evaluation methods that are universally used and finally explains the idea of this paper based on the combination the two.The third part introduces the current characteristics, capital structure and performance of the listed companies in the culture industry. Through demonstrating a series of indexes of capital structure and performance evaluation and descriptive analysis of the listed companies in the culture industry, it makes it easy for readers to understand the financial situation of the listed companies in the culture industry.The forth part is empirical analysis. This paper chooses some samples and relevant indexes of29listed companies in the culture industry in the A share market during2008and2012, makes principal component analysis and linear regression empirical analysis of the capital structure and business performance of the listed companies in the culture industry, and analyzes the empirical results.The fifth part gives suggestions of how to optimize the capital structure for the performance improvement of the listed companies in the culture industry of our country based on the conclusion of the above empirical research results.Through theory analysis and empirical research, this paper makes the following conclusions:first, asset-liability ratio of the capital structure of the listed companies in the culture industry is low while the flow asset-liability ratio and the ownership concentration are high; second, there is a negative correlation between asset-liability ratio and the corporate performance but not a fixed quadratic curve relation; there is a positive correlation between the Flow asset-liability ratio and the corporate performance and a reasonable Flow asset- liability interval exists.The main characteristic of this paper is the combination of principal component analysis and linear regression empirical analysis in the comprehensive evaluation of the corporate performance. This avoids the problem that single indicator cannot represent all the data. In addition, from the angle of research, this paper limit its samples in the rising culture industry instead of the hot trade like estate industry and manufacturing industry, which keeps pace with the time and gives more guiding significance.