Analysis Of Financing And Capital Structure Of Company

Financing is one of the most important aspects in company's financial management. Similarly, the arrangement of capital structure is the key issue of financial decision-making. Reasonable capital structure will not only be helpful to improve the operation efficiency of company, but also be helpful to optimize allocation of the social assets. At present days, the state owned enterprises whose capital structure is unreasonable are undergoing the period of system transformation. How to find the reasons? How to find the solution to optimize their financial structure? The aim of this paper is try to answer such questions. Firstly, the general description of financing and the history of the capital structure theories in the west are given. Then we deal with the factors affecting the company's decision on financial structure. An empirical research on the capital structure of the state owned enterprises in our country are conducted using mathematical models. Finally, there is a summery. The main creative works conducted by this paper are the followings: Financing tools are introduced into category standards when cataloging financing and the principle how interest rate swaps can reduce cost and risk in the process of financing is analyzed practically. Based on the deeply research of the capital theories in the west, their reference importance to the capital structure of the companies in China is pointed out. The important factors which will affect the capital structure of company under the market oriented economy are given a fully discussion. The influence of macroeconomic factors, such as interest rate, tax rate and inflation rate, on the decision-making of capital structure is also presented in this paper. 4 Meanwhile, based on the study of state owned enterprises and public owned comPanies inour country this paPer bring forwars the underlying reasons of its formation and Providespolicy advisement usillg the methOds of factor analysis and multi-regression analysis.This paPer employ the theory of ophons to obtain a measurable variable rePresentingthe cost which is a genetal combihation of proxy cost, financial crisis cost and bankrutcost. Furthermore, the OPtimized asset-debt rate is given using the vaue of comPany modelin a sense of trade off which comes from the discount dividend model (DDM)...