Positive Study On Capital Structure Of Petroleum Industry

Capital structure has been one of three major themes of financial management. Capital structure is popular attention so much for the following reasons. It involves each enterprise's link, such as capital raising, operation and profit assignment, etc. It is the important index that reflects enterprises' capital strength. It measures the capacity of enterprises paying debt. At the same time it's the starting and the end to examine enterprises' financial risk and raising funds' decision. In a word, capital structure is the gene of modern enterprises. Rational capital structure helps enterprises to improve the market value, to arrange the ownership and control power rationally, to solve the problems of enterprises governance structure and to reduce the bankrupt risk.The theory of capital structure has been relatively perfect through long-term research. However, domestic scholars have discovered that the capital structure of our country contravened the theory frame of capital structure. In view of this issue, this paper systemically studies the capital structure of petroleum industry in our country based on current situation and elaborating the capital structure of the petroleum industry.This paper can be divided four parts. Part 1 includes chapter 2 and 3, which elaborates on the theories of capital structure to provide the international experience for our country petroleum industry to optimize capital structure. Part 2 includes chapter 4, which analyses the current situation and origin cause of capital structure in petroleum industry with large amount of data. On the base of studying the current situation of capital structure in petroleum industry, such as the situation of debt financing and direct financing, etc, this part attempts to probe into the forming source of capital structure in petroleum industry from the angle of system changing and policy factors. Part 3 studies how to confirm the rational parts of capital structure. The paper puts forward a method to define rational areas in chapter 5. Part 4 discusses the approaches to optimize dynamic capital structure of petroleum industry, which is the purpose of this paper. Therefore in chapter 6 and 7 this paper respectively discusses this problem, and points out how to develop our country petroleum industry.