The Analysis On The Factors Of Household Listed Enterprises' Profitability

Since the reform and opening up,relying on the advantage of labor force,manufacturing ability of household enterprises has strengthened,its production and exports are among the highest in the world,which plays a more and more important role in the world household market.With the increasing size of the household market,competition is increasingly fierce,enterprises are facing difficulties in management,financing way,ownership structure,etc.Therefore,the paper studies on the factors that influence the profitability of household listed enterprises,especially from the perspectives of capital structure and ownership structure,will be helpful to improve management level and enhance profitability.This paper firstly reviews the basic theory and the relevant researches on the evaluation indexes of profitability,correlation of capital structure,ownership structure and profitability.Secondly,determine the sample enterprises.Because there are about 20 household listed enterprises in the current market,this paper selects nearly 20 enterprises,whose main businesses are processing and sales of furniture and artificial board.On the one hand,expecting to study the relationship between profitability,capital structure and ownership structure for longer time series,so this paper chooses household listed enterprises from 2006 to 2015,whose total observations are 120.And according to the enterprise scale and the main businesses,this paper confirms variate,conducts regression analysis and Fisher's Z transformation analysis,to find the factors influencing the profitability of household listed enterprises.Finally,to maximize the number of existing sample observations,this paper adds a few household listed enterprises in recent years,which will improve the reliability and validity of the conclusion.The empirical study on the correlation between profitability and capital structure shows that in low asset group of household listed enterprises,the ratio of stockholders' equity to fixed assets which represents stability of the capital structure is positively related to profitability.In high asset group,equity ratio which represents long-term capital structure is negatively related to profitability.Current ratio which represents short-term capital structure is positively related to profitability in both low asset group and middle asset group,while it is negatively related to profitability in high asset group.It shows that the factors influencing household enterprises are the liquidity of capital,the structure of long-term capital and the stability of capital structure.Also,in the furniture and artificial board groups,inventory ratio is negatively related to profitability,and in the artificial board groups,the ratio of shareholders' equity to fixed assets is positively correlated,which shows the factors influencing household enterprises are inventory and the stability of capital structure.The empirical study on the correlation between profitability and equity structure shows that in the low,middle and high groups and artificial board group,ownership concentration is positively related to profitability.But in the furniture group,the conclusion is negative,and the equity balance degree of profitability have a positive impact.So,it shows that the factors influencing household enterprises are ownership concentration and restraint degree between shareholders.The enterprise size is negatively related to profitability,indicating that increased assets aren't utilized efficiently.Therefore,suggestions are that household enterprises should strengthen internal management,make a strong brand,transfer to high value-added business and reduce inventory;meanwhile maintain moderate scale and ownership concentration,which will be useful to improve competitiveness and profitability.