Study On The Correlation Between Capital Structure And Profitability Of Household Electrical Listed Companies

For a long time, we keep on studying the relationship of capital structure and the value.Enterprise financing source and relationship of scale, the influence factors of capital structure,the effect of ownership structure in external financing, the relationship of capital structure andthe value, these are the hot research topic. To grow an industry, rational and effective financingis necessary; scientific and rational capital structure arrangement is also essential. The rational ofcapital structure, the strength of the capital and the grasp of the market for the future can affect acompany’s future.China’s current arrangements of home appliance industry are not reasonable, includes theunity of financing channel, the high proportion of bank credit, debt ratio and equity financingrate is not balanced. Most companies pay attention to these short-term capital decisions. Wecompare them to the developed countries and we find that developed countries put structurearrangements in a long-term strategy. We know that capital structure is a long-term strategy, andwe should deeply consider the potential effects, this is good for a strategic point of view. In thispaper, home appliance as a respective industry. First, we discuss the theory of capital structureand regression and the impact factors of China’s home appliance industry. Last, we select theindicators that referenced in domestic and foreign scholars’ literature, and finally we get relevantconclusions.