The Empirical Study On The Correlation Of Debt Structure And Performance Of The Listed Iron Industry Company

The iron industry is not only the pillar industry of China’s national economy, but also have an important influence on the basic industry of the national economy. It plays an important role in China’s industrial modernization process. The development of the iron industry has an important impact on the infrastructure and industrial development.The research on the relation of debt structure and performance of the iron industry is not only able to let the manager of the iron industry make the right decisions, and ultimate decisions also has a practical significance on the investment decisions and prevention of financial risk.Based on the correlation between the debt structure and operating performance of the listed companies of the iron industry, Introducing the definition of the debt structure of debt and how to choose performance indicators.That provide a theoretical basis for the iron industry on the empirical research of debt structure and operating performance. The article also introduce the impact that is brought to the performance of the iron industry by debt financing structure of the iron industry status. In the empirical part, providing that there is a positive correlation between the operating performance of the iron industry,and the asset-liability ratio.So do Operating performance of the iron industry and current liabilities.On the other hand,the performance of the iron industry was negatively correlated with the non-current liabilities. Select30listed companies as a sample and exclude6that do not meet the requirements,in order to make the conclusions credible and representative. asset-liability ratio,flow ratio of debt to total debt, non-current liabilities to total debt ratio as explanatory variables, ROE and the operating margin of the iron industry as other variables,the size of the company as control variables.The article defines these variables and introduces the reason why choose these variables. Based on the relationship of asset-liability ratio,flow ratio of debt to total debt, non-current liabilities to total debt ratio,ROE and operating margin of the iron industry, using report data of sample companies in the financial sector and combining with the description of the statistical analysis, comparative analysis method to draw some conclusions. Put forward a number of recommendations to improve the debt structure of the steel industry to improve the company’s performance.The conclusions drawn by linear regression is that the asset-liability ratio and performance of the iron industry is negatively correlated.It explains that the asset-liability ratio of listed companies of China’s iron industry is higher,the performance of the company is worse. Debt financing in the iron industry can not bring the positive impact. The proportion of current liabilities to total liabilities do not have any changes in the proportion when the performance of the company changes.So do the proportion of non-current liabilities to total liabilities ratio. The size and performance of company do not have some relationship as we expecte. Generally, the size and performance of company is positively related.But the result of the empirical analysis is completly opposite. So we must take measures that be in line with the real.If we do this, the iron industry will have the better and faster development.