Environmental Impact And Interests Party

Capital structure is mix of a firm's permanent long-term financing represented by debt, preferred stock, and common stock equity. It discloses a firm's financial relationship, especially the interests' relationship of restricting each other among shareholders, creditors and operators through investment and financing. The capital structure theory is an important component of the financial theory, beginning from the net income theory, the research of the relation between the capital structure and enterprise's value has been deepen constantly. Especially after the MM theory, the rule of the research of capital structure is unlocking its strict assumed conditions. But no matter how hard the researcher tried, all the theories set up the study on the basis of assumed conditions which have disparity with the reality. So it is necessary to proceed from reality and probe into the impact on the capital structure considering the factors inside and outside of the enterprises. This paper begins from reviewing the western capital structure theories, analyzing their limitations. And then considers the actual conditions of enterprises of our country, using factor analytic approach , discloses the impact of the factors that inside and outside of the enterprise and the factors rising from interests persons on the decision of capital structure. Finally put forward the measures that is suitable for the enterprise's actual conditions of our country to optimize the capital structure.