Research On Optimizing Capital Structure Of China's State-owned Forest Industrial Enterprises

State-owned forest industrial enterprises are important forces on the national economyconstruction. In the process of gradual development and improvement of our country's marketeconomy system, state-owned forest industrial enterprises are experiencing three changes,which are classifying management, considering the three major benefits, and social charitywhich is the chief element in the national economic construction. These three changes mayurge decision makers to take significant strategy adjustment of forest industry's nature andposition in the new era.During the past years, state-owned forest industrial enterprises have been facing forestresources crisis and difficulty of economic situation. This is presented as high asset liabilityrate, low benefit of capital operation, and single-product of capital structure. With thedevelopment of national economy and social improvement, people are having betterunderstanding of forest industry. They have realized that the optimization of the capitalstructure of forest industrial enterprises is an effective way to and urgent need of the consistentand stable development of these enterprises, and the maximum of three major benefits.Focusing on the optimization of the capital structure of state-owned forest industrialenterprises, starting from the theoretical basis of capital structure, benefit and risk managementand forest management, combining relevant theories and researches on the optimization ofcapital structure, and summarizing and learning from successful experiments and methods, inorder to be convenient for reaserch, this thesis grounds its argument on thoughts of forestindustrial classifying management and divides state-owned forest industrial enterprises intoecological forest enterprises and commodity forest enterprises. By discussing differentoperating objectives of the two types of enterprises, this thesis measures the ratio of the capitalstructure, the ratio of the classifications and the ratio of the capitals sources of the enterprises.It therefore clarifies the current status, existing problems and the causes of the problems ofthese enterprises. According to the features of the two types enterprises: low efficiency inmarket of the ecological forest industrial enterprises and dependence of market of thecommodity forest enterprises, the thesis constructs a general blueprint for the rational capitalstructure of state-owned forest industrial enterprises.According to the common features of commodity forest enterprises and other enterprises,and referring to the capital optimization methods of other enterprises, this thesis collects andcollates data and resources of 40 state-owned forest industrial enterprises. Meanwhile, it usesSPSS software and takes a series of financial index as explanation variables and takes assetliabilitie as explaned variables. In this way, it conducts major element analysis and feedback analysis therefore confirms to what degree the above elements affect capital structure. Theanalysis shows that the size of enterprises, the growth of enterprises and non-debt tax shieldscontribute the most to optimizing capital structure of enterprises. Low asset liability is asuperficial sign in optimizing capital structure of these enterprises. What is important is theexistence of real investment body behind the vein of low asset liability, which guarantees therunning of the enterprises with maximal profit. The thesis takes the above argument intoconsideration and constructs a capital structure optimization model of state-owned forestindustrial enterprises.We have found that the main causes of the improper capital structure and financialdifficulty in state-owned forest industrial enterprises lie in low efficiency of management. Theenterprises' operation will not be thoroughly improved if they do not optimize their capitalstructure in accordance with modem enterprise models, even though by reducing asset liabilityto improve their financial status. Therefore the fundamental solution of these enterprises'capital structure optimization relies on enhancing the effectiveness of management, whichmeans systems of encouragement and restraint. The thesis aims to form reasonable capitalstructure and assessing system for state-owned forest industrial enterprises through combiningstandard researches and case studies, considering china's current situations, referring to basictheories and methods of developed countries, relying on analytical method of economics, andmaking thorough investigations and studies. The thesis therefore breaks through the traditionalways of assessing enterprises solely by annual financial report. It brings forth new ideas inassessing capital structure of state-owned forest industrial enterprises and provides theoreticalground for state-owned forest commodity industrial enterprises.According to our country's situation, this thesis designs state-owned forest industrialenterprises' capital structure anti-risk system and encouragement and restraint system, whichare suitable for both forest resources and the needs of the enterprises. It constructs supportingsystem for capital structure optimization of state-owned forest industrial enterprises, analyzesnews thoughts of reforming the ownership of state-owned forest, and provides suggestions onguarantee measures and policy supports.Guided by systematic methodology, this thesis adopts various methods, which include thecombination of qualitative and quantitative analyses, the combination of theoretical study andcase analysis, comparative analysis, major element analysis and model methods. By using theabove methods, the thesis takes both theories and reality into consideration and conducts acomprehensive systematic study of capital structure optimization of state-owned forestindustrial enterprises. It brings forth thorough, profound and realistic new ideas for optimizingcapital structure of state-owned forest industrial enterprises from three aspects, which involveangles of analyzing problems, study system and study range. Some ideas presented in the thesis may be used as guidance and reference for the reform of state-owned forest industrialenterprises.