The Study On Optimal Capital Structure Of Tourism Listed Company

Optimal capital structure of the listed tourism companies in china is worthy of studying for its major theoretical and practical significance. With the rapid development of the tourism industry in our country, tourism companies frequently reorganized list. This paper discusses relationships between capital structure and corporate value, and tries to find optimal capital structure of tourism listed companies. This is undoubtedly of great practical significance and can enhance enterprise value.On basis of the reviews of the related literature at home and abroad, this paper summarizes the related theories of capital structure in our country as well as their application. Then, it analyzes the basic situation, capital structure status and profitability of the listed tourism companies. Finally, it takes the empirical analysis on the corporate value and capital structure, in which three propositions are put forward, namely the authenticity of the information; the optimal capital structure exists for the listed tourism companies; there is a quadratic curve relation between the corporate value and capital structure for the listed tourism companies in our country. Then this paper selects the half-yearly financial data of 18 listed tourism companies during the period 2005-2009 as the research object. After screening indexes, the asset-liability ratio, liquidity ratio, the proportion of state-owned shares, the shareholding ratio of top 10 shareholders, the size and mortgage of companies are remained to reflect the capital structure of listed tourism companies. Meanwhile, it regards Tobin's Q value as the corporate value, and establishes a binary nonlinear regression model between them to carry out the statistical analysis. The regression results show that there is a negative correlation between the capital structure and corporate value of listed tourism companies in our country, and it can't find the optimal capital structure. Therefore in the last part of this paper, it analyzes the reasons and puts forward practical recommendations.