Empirical Analysis On Relationship Between Capital Structure And Business Performance Of Tourism Listed Companies In China

Having a "smokeless industry" and "sunrise industry," said tourism, and oil industry, the automotive industry tied for the world’s three major industries, the development of tourism has become an important indicator to measure the level of national and regional modernization. After decades of reform and opening up, China’s tourism industry has developed rapidly. 1978 China International Tourism is just emerging, when tourism foreign exchange income of only $ 600 million, 1.81 million people received inbound tourists. Tourism has a steady growth, domestic tourism 3.6 billion passengers, an increase of 10%; 128 million passengers inbound tourism; outbound tourism for the first time exceeded 1 million passengers mark, reaching 109 million people; total annual tourism income of about 3.25 trillion Yuan, an increase of 11% in 2014. Tourism business as a carrier of tourism development, with the continuous development of tourism, China’s tourism enterprises have gradually grown and have moved into the market.Shanghai Jinjiang hotel as the country’s first listed travel company in June 7, 1993, so far, has more than 30 travel companies. With the rapid development of tourism and gradually explore of the capital markets, listed companies in China’s economic operation is increasingly becoming an important part. Tourism business performance of listed companies more and more of the theoretical academic concern and attention; at the same time, the capital structure has been widely regarded as one of the key factors that affect the cost of capital and the market value. The study of listed companies’ capital structure becomes an integral part of corporate performance of listed tourism research. This paper aims to optimize our capital structure and improve the company’s operating performance by the empirical analysis on relationship between capital structure and business performance of tourism listed companies.Firstly, for the current research were discussed, the author found that between capital structure and operating performance was positively correlated, negatively correlated, non-negatively correlated. Followed describe the theory of capital structure of listed companies and review the performance evaluation of tourism related literature. Finally, the study selects return on equity and main business profit as the index of performance, with assets and liabilities, equity ratio reflects the company’s debt-equity structure, the proportion of the outstanding shares, the proportion of state-owned shares, the largest shareholder Seven former stake and shareholding ratio reflects the company’s ownership structure, the ratio of current liabilities to total assets, the ratio of long-term debt to total assets reflect the company’s debt structure. Construct the panel data model and then analyses the relationship between tourism listed companies’ capital structure and business performance.Based on the financial data during 2007-2012 that the companies listed by the end of December 30, 2006.The results indicate that there is a significant negative correlation between debt-to-assets ratio and performance; there was a significant negative correlation between the share ratio of the largest shareholder and performance; the ratio of state-owned shares, the proportion of tradable shares and performance are not significant positive correlation; there was a significant positive correlation between current liabilities ratio and performance; long term debt ratio have negative influence on business performance. At last, the author put forward development proposals.