The Study Of Multinational Corporations Capital Structure Optimization

Capital structure optimization is very important to MNCs' worldwide capital operation and helps so much to the target of "maximum firm's market value". This paper researches the optimization issue of MNCs' capital structure. It has been arranged as follows:" Preface" illuminates the subject of this paper and the necessities of this study.Chapter one is " The development and evaluation of capital structure theories ". At first, the paper scientifically defines what is the " capital structure", and then it introduces the development of capital structure theories and makes comment of them relatively. It also points out the new characteristics of contemporary theories.Chapter two is " The analysis of MNCs' optimum capital structure determinants". The paper proposes the innovative analysis framework about the problem on the basis of Tradeoff Model, and then it studies further on the determinants of MNCs' capital structure; finally the paper synthetically analyzes how the environmental factors, industry difference factors, and corporation's individual factors directly influence the MNCs' capital structure.Chapter three is " The study of MNCs' capital structure optimization and MNCs' capital cost". At first, the paper points out that "capital cost control" is the inevitable measure of capital structure optimization must to take. It discusses the particularity of the MNC's capital costs and puts forward the method to calculate them. Finally, it analyzes how to optimize MNCs' capital structure.Chapter four is "The decision of oversea subsidiaries' capital structure ". Firstly it throws light on the status of subsidiaries' capital structure in MNCs' whole capital structure, and then it analyzes the goal and the channels of oversea financing; at last it discusses the arrangement of oversea subsidiaries' capital structure.Chapter five is " The counter-measures of Chinese MNCs' capital structure optimization". The paper analyzes the existing problems of Chinese MNCs' capital structure, and then proposes a series of countermeasures about optimization.The innovations of this paper include following respects:1.Research object innovation. Most of domestic papers just launch researches onthe state-owned enterprises' capital structure; and study for MNCs' capital structure has scarcely been seen. This paper's subject is MNCs' capital structure, and it must have innovative meanings.2. To propose the analysis framework of MNCs' optimum capital structure based on Tradeoff Model. It is the innovation of research angle and approach on this problem.3.To study the MNCs' capital structure issue from worldwide viewpoint. The paper measures MNC's capital cost on the basis of MNCs' whole interests; and it puts forward the idea that Chinese MNCs' must focus on optimizing domestic unreasonable capital structure,...