The Research On Dynamic Optimizing Path Of Corporate Capital Structure And Its Realizing Mechanism

It is popular in Chinese firms that capital structure is irrational. It is obvious that non-listed state-owned companies, listed companies and SMEs still have ternary financing trends priority of debt financing, equity financing, personal capital. Capital structure of these firms is far from optimization with the objective of maximizing firm value. As the core of corporate finance theory, it is not only wide concerned by scholars around the world, but also the urgent problem to enhance capital efficiency and value creating abilities to research on how to realize the optimization of corporate capital structure.Most literature analyzes the target capital structure from various points, not taking the formation and transformation of capital structure as a dynamic process, which leads past findings in traditional framework. The paper studies the optimization of capital structure from "dynamic" perspective. First, it forms dynamic model based on growth opportunities and macroeconomic factors to test the dynamic of capital structure. Then, from system and kybernetika theory, corporate capital structure is considered as a kind of dynamic economic system. By demenstrating the objectives, principles and workflow of dynamic optimizaition, the paper proposes the optimization speed as the key measurement, and incremental analysis in economics as the core research methods.Through calculating incremental cost, revenue and risk along with optimizing acts, the objective function and constraints of dynamic optimization of capital structure are established. After choosing optimal control theory as mathematical tool, the optimal state path and control paths are extrapolated. Then, associating with positive and passive feedback effects in economic system, the dynamic equilibrium trend of capital structure movement is described. In the process of dynamic optimization, optimizing speed and balance status are two key factors. According to past research results, industrial average is a feasible option for balance status. Therefore, control of optimizing speed is the main problem. From investigation about constraints on optimizing speed, it is concluded that the interior transaction costs of optimizing decision crucial and how to reduce it should be focused on.Using theories of corporate governance and behavioral finance for reference, based on the analysis on coherence between governance and capital structure, it is put forward that stockholder and creditor structure should keep moderate. Along with the collocating and transferring model of corporate control, "contingency" mechanism is designed to cater for "dynamic" optimization of capital structure. Finally, taking Chinese listed companies as samples, the dynamics of corporate capital structure is tested. At the same time, the paper demonstrates the optimizing status of capital structure in manufacturing and trade industry, and draws the concludsion that optimizing speed is relative low and stability is better.