Theoretical Study Of China's Capital Structure Assessment Of The Situation

Since 1958, Modigliani and Miller had made the modern sense-MM theory of capital structure theory, which has attracted many scholars to pay more attention to the importance of capital structure theory, with the ongoing research on it, capital structure theory becomes more and more widen. In China, the study on the capital structure theory was late, because our country implemented a planned economy system in the early period of time, the issue of corporate capital structure didn't attract enough attention. As the reformation and opening up, China's socialist market economic system had been built, the business funding sources had changed and enterprises had grown their own development needs, therefore, the capital structure has become the focus of research in the field of financial theory gradually. In this paper, the author uses the theoretical research method to study this topic. First, it shows a brief review of the development of the theory of capital structure in recent years, and concludes and summarizes the basis of research results mainly from the macro environment, industry and corporate governance factors of capital structure of Chinese enterprises. Second, the writer analyzes the capital structure theory combining with our current capital structure, which integrating theory with practice. Comparing the capital structure in the background, methods and the content with foreign countries, China have not formed the theory of Chinese characteristics, due to the short development time, lack of experience, so the research method which is combining theoretical study with empirical research should be focused on, and the study should strengthen the construction of models and extend the sample data in the content,pay attention on extension of micro-factors, for instant, the human capital constructs a part of capital structure theory, which makes capital structure theory have a wider field to study. Finally, in order to help our capital structure research, this paper try to explore the future development trend of theoretical studies,and according that to analyze the optimization of the directions on our enterprises capital structure. And the writer hope the scholars will continue to research, making the theory applying to practice, guiding and developing the theory from practice.