business-v7-i3-Article 3 – KKG PUBLICATIONS

Research on the Relationship between Capital Structure and Financial Performance of Air Transport Companies Listed on the Shanghai and Shenzhen Stock Exchange of China

Volume 7, Issue 3
Wang Qiao, Li Li

Published online: 26 June 2021

Article Views: 20

AbstractReferencesCite

This paper studies the relationship between the capital structure and the financial performance of listed companies in the air transportation industry. In the research process, the literature research method is mainly used to analyze and comb the research status at home and abroad; the statistical analysis method is used to study the status quo of the capital structure and financial performance of China’s shipping and transportation listed companies. Clarify the characteristics of capital structure and financial performance through status quo research, and analyze the reasons; use regression analysis, factor analysis, and other research methods to establish models and empirically analyze the relationship between capital structure and financial performance of listed companies in China’s air transportation industry. The study found that the comprehensive financial performance of air transportation companies listed on the Shanghai and Shenzhen stock exchanges in China are negatively correlated with Short-term debt ratio, Long-term debt ratio, Commercial credit ratio, and Equity balance; and the Shareholding ratio of the largest shareholder CR1, the Shareholding ratio of the top ten shareholders CR10, and Company size are positively correlated. Through the analysis of the relationship between capital structure and financial performance, it can provide a basis for adjusting the capital structure of air transport companies. Optimize the financing order of the air transportation industry and reduce the debt ratio.

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Qiao, W., & Li, L. (2021). Research on the relationship between capital structure and financial performance of air transport companies listed on the Shanghai and Shenzhen Stock Exchange of China. International Journal of Business and Administrative Studies, 7(3), 27-41. doi: https://dx.doi.org/10.20469/ijbas.7.10003-3