Research On The Optimization Of Capital Structure Of *ST Ji En Under The New Normal Condition Of Economy

One of the key points of the regulation of the new normal condition of economy is to reduce the cost of social financing,promote the transformation and upgrading of enterprises,and accelerate the production of innovative factors.Starting from the current characteristics of economic development,the state has proposed a series of measures to reduce social financing costs and encourage enterprises to innovate and develop,providing tremendous opportunities for the entire economic market participants.At the same time,the state has proposed a policy of “three to one,one reduction and one supplement” to promote structural adjustment of the economy.This poses a serious challenge to the development of the non-ferrous metals industry.Whether the capital structure reasonably affects the cost of capital,the size of financial risks and the profit of investors,which is the core issue of corporate financing decisions.Studying the capital structure has important theoretical and practical significance for the development of the non-ferrous metals industry.Through the combing of domestic and foreign literatures,this paper elaborates the influencing factors and optimization pathes of capital structure in detail.*ST Ji En is the "first share" of the nickel listed company in China.It is one of the few nickel mine producers with mine resources in China.In 2018,it was the first batch delisted stocks which was hit by net profit,net assets and audit opinion.In the case of *ST Ji En,there is a distinct era and typical representation,and data sources are readily available.In this paper,the research on the optimization of capital structure of *ST Ji En under the new normal condition of economy is divided into seven parts.The first part is the introduction,which mainly introduces the research background and significance of this paper.It sorts out the related research on the factors affecting and optimization pathes of capital structure at home and abroad.Based on the review of previous research,it puts forward the research ideas,research contents and research methods.And then,it raises the innovations and shortcomings of this article.The second part is the concept definition and related theories.It mainly defines the concepts of the new normal condition of economy,*ST,capital structure and the optimization of capital structure,and introduces the basis of theoretical research,including the MM theory,Agency cost theory,Trade-off theory,Signal transmission theory and Priority financing.The third part is the impact of the new normal condition of economy on the capital structure of *ST Ji En.From the four new normal features of "excellent structure","new power","medium speed" and "multi-challenge",this paper has deeply analyzed opportunities and challenges.The fourth part is the analysis of the current status of the capital structure of *ST Ji En.Firstly,it introduces the principles of the indicator selection;secondly,lists the trend of capital structure changes in the non-ferrous metals industry from 2013 to 2017,and analyzes the current status of the capital structure of *ST Ji En from the perspective of industry;third,from asset-liability ratio,equity ratio,current debt ratio,non-current debt ratio,asset tangibility and enterprise scale,vertical debt analyzes the capital structure of *ST Ji En development status from 2013 to 2017.The fifth part is the analysis of the cause of existing problems of the capital structure of *ST Ji En under the new normal condition of economy.From the current situation,from the perspective of the coexistence of opportunities and challenges,this paper analyzes the affecting factors the capital structure of *ST Ji En.The sixth part is the optimization proposal of the capital structure of *ST Ji En under the new normal condition of economy,combined with the status quo analysis and cause analysis,comprehensively evaluates the capital structure of *ST Ji En and combines the characteristics of the new normal condition of economy to propose optimization suggestions to the capital structure of *ST Ji En.The seventh part is the conclusion and enlightenment of the study.Through the case study of the optimization of capital structure of *ST Ji En under the new normal condition of economy,three conclusions are drawn and the industry enlightenment is derived for reference by other companies.The innovation of this paper lies in two aspects.First,the research perspective is novel.Based on the background of the times and the previous normative analysis,this paper relies on the industry big data to analyze the trend trend of the capital structure of *ST Ji En,and explores the influencing factors and mutual relations of the capital structure of *ST Ji En,which has a strong sense of the times and the practical significance.Second,the research object is unique.Based on the particularity,this article takes the first batch of stocks that have been delisted due to three delisting indicators such as net profit,net assets and audit opinions in 2018.It has a distinct era and typical representation.Through the case study of the optimization of capital structure of *ST Ji En under the new normal condition of economy,this paper draws the following conclusions: First,the new normal of the economy brings opportunities and challenges to the adjustment of the *ST Jean Capital structure.Opportunities are reflected in two aspects.On the one hand,it helps them speed up the adjustment of capital structure and promote the transformation and upgrading of enterprises.On the other hand,it encourages them to increase short-term borrowing and ease financial pressure.The challenge is also reflected in two aspects.On the one hand,its product demand and asset liquidity have been constrained to a certain extent,and profitability has declined.On the other hand,the translation difference in foreign currency financial statements has increased,and the owner’s equity has decreased.Second,the capital structure of *ST Ji En is at an unreasonable high.Specifically,in the past five years,*ST Ji En’s asset-liability ratio is at a high level in the industry and continues to rise;the proportion of property rights fluctuates greatly,plummeting in 2017;the current debt ratio is rising,but at a low level in the industry;although the non-current liabilities rate has continued to decline,it is at a high level in the industry;the asset tangibility is at a high level in the industry and continues to rise;although the scale of the company has declined,it is at a high level in the industry.Third,the capital structure and *ST Ji En delisted from each other.On the one hand,under the new normal condition of economy,the layout of the capital structure of *ST Ji En is unreasonable,which has led to a huge loss for three consecutive years,and finally delisted from the three indicators of net profit,net assets and audit opinions.On the other hand,the delisting has caused *ST Ji En’s profitability and solvency to decline,resulting in increased financial pressure and further deterioration of the capital structure.