Empirical Research on Impact of Capital Structure on Profitability of Agricultural Listed Companies

The capital structure affects the business performance,and different industries require different capital structures.This paper researches on agricultural listed companies.Firstly it computes the profitability score of agricultural listed companies based on factor analysis,and then studies the impact on the profitability of the capital structure based on linear regression methods.The results show there is high linear correlation between the profitability of agricultural listed companies and its capital structure.The capital structure has significant negative impact on the profitability of agricultural listed companies.It has the trend to better their capital structure.