Empirical Analysis of the Capital Structure and Profitability of Chinese Listed Companies

Abstract

This paper founds that Hubei Province listed company’s capital structure to profitability is negatively related. This paper selects 69 listed companies in Hubei Province as the research objects, aiming to explore the internal relations between capital structure and profitability and provide reference for listed companies in Hubei Province to optimize capital structure. This paper uses stata16.0 software for empirical analysis and conducts multiple linear regression analysis on the collected data with capital structure as the explanatory variable and profitability as the explained variable, and obtains the multiple linear formula. Accordingly, the way to increase the profitability of listed companies is to optimize capital structure.