Empirical Study On The Relationship Between Capital Structure And Financial Performance Of Listed Companies In Wholesale And Retail Industry

Development of economic globalization makes the service sector grew its shareof the social output value of the proportion gradually increased, in the world, manycountries particularly in middle-income countries, they have gradually started totransform the economy to a service-oriented society. In many service industries, thedevelopment of wholesale and retail performance is particularly prominent. With thedevelopment and growth of wholesale and retail industry, manufacturing leadershipposition gradually subjected to threats, and wholesale and retail industry is becominga measure of a country’s or region’s economic development. Although thedevelopment trend of China’s wholesale and retail sector is good, but in the process ofdevelopment and growth, it also has some problems, such as the relatively small scaleenterprises in wholesale and retail trade, the residents’s wishes of wholesale and retailis mainly affected by price fluctuations, low wholesale and retail enterprisemanagement level.Based on the theory of capital structure on corporate performance influencemechanism, this paper mainly analyze the capital structure and corporate performanceof relevant theories and research status, and then through study the status quo in ourcountry in the wholesale and retail industry of the capital structure and corporateperformance of listed companies, to explore its overall development. Based on this,according to the relevant data which we have collect, through factor analysis andpanel data model to empirical research the relationship in the wholesale and retailindustry in our country between the capital structure of listed companies andcorporate performance. Finally, from multiple aspects of listed company in wholesaleand retail industry, this paper give some capital structure optimization suggestions.This article concluded as follows:(1) In this paper,select data of70listed companies in the retail industry duringthe period2009-2013to analyse the capital structure and corporate performance, theresults show that the capital structure, the higher the overall debt levels of listedcompanies in wholesale and retail trade, a higher proportion of state-owned sharesownership and corporate dominance of the phenomenon is more serious. In terms ofbusiness performance, our wholesale and retail trade of listed companies operatingcapacity is relatively stable, but the profitability and development capacity has declined in recent years.(2) This article extracted from many factors to measure the performance of thewholesale and retail companies listed in the five main factors for a comprehensiveevaluation of enterprise performance by factor analysis. Based on this, we use paneldata model to analyse the the relationship between ownership structure and corporateperformance, and the results show that, in addition to the ratio of the largestshareholder has a positive effect on firm performance, the remaining arguments are onfirm performance has a negative effect.(3) To enhance the performance of listed companies in wholesale and retailindustry is an effective way to optimize its capital structure, the paper combined theresults of empirical studies thinks that to optimize the capital structure of listedcompanies in wholesale and retail, listed companies need to reduce the debt level,opening up new financing improve debt structure, reduce the proportion ofstate-owned shares ownership, shareholding reform to strengthen and improve thenational policy environment, improve the industrial policy to improve businessoperations and profitability as well as to promote the wholesale and retail trade of theoverall market.