Research On The Relationship Between The Capital Structure And Profitability Of Listed Companies In Information Technology Industry

Capital structure is the concentrated reflection of the rights and obligations enterprise stakeholders, the corporate governance structure and corporate value and have significant impact. Reasonable capital structure can enhance the enterprise financing ability, improve the enthusiasm of enterprise managers to invest in business, on the other hand, unreasonable capital structure is easy to cause the management moral hazard, influence the financing ability, and make the enterprise performance decline. Research on the relationship between capital structure and profitability in information technology industry can not only reveal the inherent relations among the factors of capital structure and profitability, but also provide theoretical basis for investment and financing decisions and guidance, in order to improve enterprise profitability.This paper, on the basis of summarizing the domestic and foreign research results, and based on the data of 228 listed companies in China’s information technology industry as research samples from 2010 to 2014, described the current status of the capital structure and profitability of listed companies, and selected asset-liability ratio, ratio of short-term debt, long-term debt ratio, bank deposit ratio, current ratio, the ratio of the first largest shareholder on behalf of the capital structure, to join the company size as control variable, and chose the total assets profit margin, total asset turnover, operating margin, net interest rate of the business, operating margins and earnings per share on behalf of the company’s profitability. Then it used factor analysis method to construct the comprehensive profit ability factor score as the dependent variable, combined with principal component analysis, factor analysis, panels regression analysis and the second curve estimation, to examine the correlation between capital structure and corporate profitability.The results showed that the asset-liability ratio of listed companies is negatively related to the profitability within the scope of the state variable. Short-term debt ratio and long-term debt ratio are negatively related to the profitability, current ratio is negatively related to the profitability, the ratio of the first largest shareholder is positively related to the profitability, but not significantly. Company size and profitability are positively related. Finally, corresponding policy and suggestion according to the research and conclusion are put forward, from macroscopic and microscopic aspects.