The Study Of Finance And Financial Risk Of Publicly Held Company

Under the market-economy condition, financing is the foundation and the prerequisite of an enterprise's operation. The cost of the financing directly influences the risks and benefits of the enterprises. Viewing from the angle of a financial manager of a publicly held company, this paper will study financing and risk issue of the enterprises. It first reviews our country's enterprise mileage of reform, and analyzes the present outside environment of publicly held company and situation of the development of China's capital market. Drawing lessons from foreign mature market economy in their commonly -used Capital Structure Theory, this thesis will analyze our country's risk problem of publicly held company, and set up a rational quantization model on this basis to realize the optimization of the capital structure of the publicly held company.This paper is divided into four parts with the systematic argumentation.Part I : Retrospecting from our country's development and capital market of publicly held company, the thesis analyzes the present situation of the stated-owned enterprises' bad benefits and great loss, and explains the negative effects which are caused by unreasonable enterprise system and the disposing pattern of social fund. After arguing that the mature development would infect life and vigor into the publicly held company of our country, the paper stimulates that financing would become an important subject, which is worthy of the financial manager to care about.Part II: Having briefly introduced the early representative Capital Structure Theory and the contemporary most influential MM Theory abroad, this paper also analyzes the capital cost of different financing ways and its influence on the value of the enterprise. Then it would expound in detail the glamouring transformable bond in international financial market for the purpose of offering basis for the enterprise to choose financing ways and find its best capital structure.Part III: This part mainly sums up and analyzes the possible risk caused the different financing ways of the publicly held company, explaining that the financing may bring benefits to the enterprise, also the risk. Only understanding the risk can the enterprise control and utilize and manage the financial lever in a scientific way.Part IV: Based on the analysis of the enterprise on their financial cost and risk, this part expound conditions and standards of the rational capital structure, also the way to determine the best capital structure. Through consulting the mature foreign theory and considering the characteristics of our own enterprise, this part analyzes and explains the different ways to determine the best capital structure in detail, meanwhile summing up and discussing various factors that can influence the capital structure.