The Study On MNC's Capital Structure And Its Optimization

As the rapid development of economic globalization, the impact of MNC has becomemore and more important in the economic field of the world. As the result, the research ofMNC'financial management has been an important task in academe. Especially, capitalstructure optimization is very important to MNCs'worldwide capital operation and helps somuch to the target of"maximum firm's market value".Beside,the research of MNC'capitalstructure can also enrich the connotation of the capital structure theories, and have the role ofpulling the development of these theories,so that this research also has some meaning intheory.On this basis, this paper researches the optimization issue of MNCs'capital structure,andgives some helpful measures to the optimization of Chinese MNC' capital structure.Chapter one introduces the development of capital structure theories elaborately, and can bethe theory instruction to the research of MNC'capital structure. Chapter two analyzes thespeciality of MNC' financing and the goal and the channels of its financing,so to research thedecision of MNC'-especially its oversea subsidiaries'-capital structure. Chapter three-"Theanalysis of MNCs'optimum capital structure determinants"-is the keystone of this paper. Thepaper proposes the innovative analysis framework about the problem on the basis of research onthe analyses of MNC' debt cost,and then it synthetically analyzes how the national factors,industry factors,and corporation's individual factors directly influence the MNCs'capitalstructure. Chapter four-"The study of MNCs'capital structure optimization"-is also an importantpart of this paper.At first,the paper poinis out tha"tcapital cost control"is the inevitable measureof capital structure optimization must to take. It discusses the particularity of the MNC's capitalcosts and puts forward the method to calculate them. Finally,it analyzes how to optimizeMNCs'capital structure. The last chapter analyzes the existing problems of ChineseMNCs'capital structure,and then proposes a series of countermeasures about optimization.