A Study on the Relationship between the Capital Structure and Financial Performance of Listed Companies in the Power Industry: Taking Guangzhou Hengyun Enterprises Holding Ltd. (000531) as an Example
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Keywords
capital structure, financial performance, listed companies, power industry
Abstract
This study examines listed companies in China's power sector, utilizing panel data from Guangzhou Hengyun Enterprises Holding Ltd. (000531), a state-controlled enterprise in the industry, covering the decade from 2015--2024. Multiple linear regression analysis is used to empirically investigate the relationship between capital structure (with the debt-to-asset ratio as the core indicator) and financial performance (measured by the return on equity and gross profit margin). The findings reveal a negative correlation between the debt-to-asset ratio and the financial performance of listed power companies. Finally, considering the capital-intensive nature and strong policy orientation of the power sector, this study proposes recommendations for optimizing capital structure and enhancing financial performance. These insights provide a reference for financing decisions and operational management during the transformation period of similar regional power enterprises.
References
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