The Relationship Between Financing Structure And The Profit Of Strategic Emerging Industry Listing Corporation

After the 2008 financial crisis, American, Japan, Europe and other countries put forward the development of emerging industries as a breakthrough in promoting the social and economic development, and give a strong policy support.The strategic emerging industries are entering the center stage of world economic development,and becoming a national collective action and common choice.In order to better meet the fierce international competition,implement the sustainable development strategy,the Chinese government put forward the policies of the development of strategic emerging industries.Our government uses it as the transformation of the mode of economic development to explore the new point of economic growth, optimize and upgrade the industrial structure, alleviate the pressure on resources and the environment. Adequate and reasonable financial support is a prerequisite for the survival and development of enterprises, strategic emerging industry only in reasonable funds can get long-term development. Visible, the financing problem affects the company’s profitThe company choose the mode of financing will determine its financing structure, and the financing structure can influence the value and market competition of the enterprise.In other words, the company profit is an reasonable performance of the financing structure. Reasonable and effective financing structure is essential for improving the profit of company. Strategic emerging industries have become an inevitable choice for the future economic development of Jiangsu Province,so the study of the relationship between them has the urgency of the times and importance of the theory and reality.The author will analyze the relationship between the financing structure and profit of strategic emerging industry of Jiangsu listing Corporation through the theoretical analysis and empirical test.First of all, the article reviews the domestic and foreign literature about the strategic emerging industry, financing structure and profit And then,the author describes the theory of profit and financial structure. Next,in the current situation of the development of strategic emerging industries,the author mainly introduces the current situation of financing structure and the profit of strategic emerging industry in Jiangsu Province;On this basis,in the empirical research,the author take the latest financial data of the 98 listing corporation of Jiangsu strategic emerging industry during 2010 to 2013 as the object,adopting internal financing rate,commercial credit rate,long term bank financing rate,financial financing rate,equity financing rate as the financing structure variable,and the rate of return on net assets as the profit index.In the robustness test,the author takes the ratio of operating profit to net assets as an alternative variable of profit.Test results show that the equity financing rate ranks first, follows by debt financing rate, and last is the internal financing rate in the financing structure of the strategic emerging industries in Jiangsu Province;Regression results are consistent with the hypothesis.Namely,the commercial credit rate,long term bank financing rate,financial financing rate has a positive effect with the company’s profit, equity financing rate has a negative effect with the company’s profit, internal financing rate has a positive effect with the company’s profit.At the same time, the robustness test result is consistent with the regression results.Finally, on the basis of the analysis and empirical results,the author put forward relevant countermeasures and suggestions of financing of Jiangsu province strategic emerging industry listing corporation from the four aspects of the market demand, the life cycle.the proportion of financing and industry cultivation to provide reference for further promoting the sustainable profit of emerging industries.