A Study on the Relationship between Capital Structure and Profitability Based on the Empirical Data of Listed Companies in Cultural Media Industry in China
This paper chooses the listed companies in cultural media industry as the subject, selects 23 listed companies as the sample, utilizes the finical data during the period of 2002 and 2011 and employs the principal component analysis and linear regression methods to carry on an empirical research on the relationship between capital structure and profitability of the listed companies in cultural media industry. The research results show that the asset-liability ratio and profitability have significantly negative correlated relationship, and shareholders equity ratio has significantly positive correlated relationship with profitability, however, the relationship between liquidity ratios and profitability is not significant. Therefore, optimizing the capital structure can be recognized as an important way to improve the capability of listed companies in cultural media industry.