The empirical study on relationship between capital structure and operating performance of the transportation listed companies

In order to solve the order of corporate finance problem with the relationship between capital structure and operating performance, a variable grey correlation model is used in this paper. We use the Grey Correlation Analysis to study the relationship between operating performance and capital structure on the basis of the 44 listed transportation companies in Shanghai and Shenzhen stock exchanges. The results show that the correlation between operating performance and equity financing is not high, and the correlation between debt financing and operating performance is higher than that between equity financing and operating performance. Therefore, the order of corporate finance is internal financing, bond financing and finally equity financing, it is better for the transportation listed companies to enhance the company´s performance.