Research On The Optimization Of Capital Structure Of T Environmental Protection Company

As a developing country,with the deepening of Chinese economic reform,China’s economy has maintained a steady and high growth rate every year,the comprehensive strength has been improved.However,in the process of development of social transformation,extensive development and accumulation have resulted in worsening environmental degradation.In recent years,as one of the seven strategic emerging industries,the environmental protection companies received more attention,and with increasing of policies support,the environmental protection companies will continue to develop rapidly.China’s environmental protection industry is highly dependent on government investment;it is a challenge for them to adjust the capital needs and the arrangement of capital structure to adapt to the macro-control by government.They should actively optimize their capital structure according to the governmental macro-control to response to market competition,avoid management risk and financial risk and maximize the enterprise value.In this paper,based on the theory on capital structure,takes T environmental protection co.,LTD as the research object,start with the development history,structure of business and business circumstance of the company,by comparing the current situation of the capital structure of the top ten enterprises in the environmental protection industry,the average level of capital structure of the industry and the current situation of capital structure of T environmental protection co.,LTD,found that there are some problems with the capital structure of the company as the debt scale is not stable,the term structure of liabilities is unreasonable,lack of working capital,low ratio of internal financing,equity concentration is too high and so on.Then,the author based on the company’s overall development strategy to construct the optimization system of capital structure for T environmental protection co.,LTD,and from the ways of scale of debts,debt structure ownership structure to put forward the optimization strategy.At the present stage,the task is to take the enterprise has a stable development,adjust the structure of debt and bring in strategic investors.The task of the transitional period is to expand the business,broaden the financing channels,and realizing diversity investment.In the maturity stage,capital operation should be carried out,which requires the combination of public equity financing and public debt financing,and to build a financing system.Finally,considering the overall situation of the company,the capital structure optimization guarantee measures are put forward.The government needs to standardize and improve the capital market,the T environmental protection co.,LTD should pay more attention to the construction of the capital structure optimization,improve the company’s financial management system and risk management system to implement the project of the capital structure optimization.The contribution of this article is that the construction of the capital structure optimization system for T environmental protection co.,LTD based on the company’s overall development strategy,taking into account the company in different life cycle stages have different development strategy combination and financing needs,considering industry characteristics,through make every stage of the development strategy in detail,the capital structure optimization are advanced in stages.The paper puts forward the idea of optimizing the capital structure and the concrete operation,which can provide practical reference for the small and medium-sized enterprises in environmental protection.