An Empirical Research On The Relation Between Assets Structure And Profitability Of Hi-tech Listed Corporation

Assets structure ultimately expresses the proportion of all types’ enterprise assets in the total assets, and the various types assets mutual ration relationship. Capital structure and assets structure are two sides of the problem of fund and they comprised the Balance sheet. Capital structure which has a tight relation with the company’s performance is the fundament of company’s operation. However, compared to capital structure, assets structure promotes the performance in a more straight way. Besides, with the unreasonable distribution of resources, the problems of the listed companies losing the balance of assets structure and the inefficiency of assets become more and more serious. These will affect the enterprises continuity of development. Then what is the relationship between the assets structure and the profitability, whether related or not, how about their related degree. There are few articles studying on this question. So our research on the assets structure and the profitability will be great significance.This paper selected530high-tech companies from Shanghai and Shenzhen stock market between2010and2012as the sample for the study. Then choose five indicators which reflect the assets’structure and indicators which reflect profitability, combined with statistical description, we analysis the relationship between assets’ structure and the profitability. We choose the asset structure of the company as an explanatory variable, profitability as the dependent variable, developing a multiple regression analysis and establishing the multiple regression equation. The results showed that the degree of overall assets structure impact on the profitability of the business is not deep, but some of the assets structure and profitability indicators show the close relationship, including cash ratio. The cash ratio showed the opening down "U" relationship with the axis of twenty percent, but the fixed assets ratio had a significant negative correlation. The other did not show a significant correlation.This paper analysis the relationship between assets structure and profitability, in order to prove that keeping a reasonable assets structure is not only the main access to enhance the performance of company, but also the critical factor of keeping sustainable development. Therefore, it provides beneficial policies and suggestion for operators, investors and stockholders to optimize the allocation of resources.