Analysis On The Factors Influencing The Profitability Of Listed Companies In Cement Industry

With the growth of China's economy entering into a more stable period and the promotion of urbanization in the middle and late period,overcapacity phenomena appears in some rapidly expanding industries.Taking cement industry as an example,because of the intensification of the contradiction between supply and demand,the profit level of industry has fluctuated since 2010,and the industry profit has reached the historical low point in 2015.As an important part of the national economy,improving and enhancing these industries' profitability is of great significance for optimizing the allocation of resources and increasing the overall welfare of the society.Based on the relevant research results at home and abroad,this paper selects six influencing factors including capital structure,asset scale,ownership concentration,Industrial concentration and so on,and carries out a theoretical analysis.At the same time,taking the panel data of 2010-2016 years to 25 cement listed companies as research samples,this paper extracts comprehensive evaluation index to reflect the profitability of the enterprise by using the principal components method.With this index as the dependent variable,we build a model including the six factors to carry out the empirical analysis.On the basis of the empirical results,we reached to relevant conclusions such as:capital structure,ownership concentration and profitability is negatively correlated,the ownership concentration variable is not significant;asset size,asset turnover and enterprise growth variables and profitability are positively correlated;the industrial concentration and profitability significantly positively correlated,influence of the demand side of the real estate and infrastructure is not strong as the supply side effects.Finally,based on the analysis this article gave some suggestions on improving the profitability of the cement industry at the level of policy and enterprise.