A Study On The Correlation Between Debt Structure And Operating Performance Of A Company

The coal industry has been promoting the economic growth of our country powerfully, whilethe operating performance of listed coal companies is playing a key role in health and stabledevelopment of the coal industry. There is a close logic relationship between corporations' debtstructure and operating performance. This paper has analyzed the debt structure of listed companiesof Shanxi coal industry according to the annual date, and estimated the correlation between debtstructure and operating performance of corporations in Shanxi coal industry by using multiple linearregression model. It turns out that for debt maturity structure, neither long-term liabilities norshort-term debt has distinct affects on operating performance, which is negatively correlated withshort-term debt ratio and positively related to long-term debt. As regard to debt type structure, ratioson bank debt, commercial credit and employee debt are positively related to operating performance,while government liabilities has a negative correlation. This paper has also made a comprehensiveevaluation on the correlation between debt structure and operating performance of companies inShanxi coal industry by means of factor analysis. Some issues on the debt structure have beenspotted and some advice has been provided in this thesis, helping to improve corporations'operating performance.