Changes In Capital Structure Of State-owned Enterprises And Case Studies Of The Impact On The Corporate Value

Enterprise value maximization is the goal of each company. Since the establishment of MM theory, the study of relationship between capital structure and corporate value , promoting the development of the capital structure's theory. Although the western experts have discussed the relationship between capital structure and corporate value for many years, but in view of the fact that the Chinese economic stage, especially for State-owned enterprises, there are a lot of usability issues. So this paper expects to study the relationship between Chinese State-owned enterprises ' capital structure and corporate value.The paper to study the effects to corporate value by the change of State-owned enterprises'capital structure in China, primarily through case studies. At the beginning of this paper, we systematically trace down the development of capital structure theories. Second of all, on China's State-owned industrial enterprises in the industry between the capital structure and profitability analyses, and single-industry capital structure and profitability analysis, finding the best interval applies to the capital structure of enterprises and industry, and in State-owned enterprises and a decade of development in some of the industry to deviate from the optimal capital structure. Finally, by State-owned electricity company is listed on the samples from the cumulative rate of return in excess of the market and the economic value added two perspectives prove the existence of optimal capital structure interval. It try to find out different effects on corporate value when the capital structure inside or outside the optimal interval. Further proof that our State-owned enterprises of corporate value, in the optimal capital structure interval, raise as the debt ratio rise. Developing gradually deviated from the optimal capital structure interval industries and State-owned enterprises, this paper try to analysis of the cause of the current status of State-owned enterprises Therefore, this proposal was not confined to the capital structure and the relationship between corporate value, including the strengthening of corporate governance structure and the construction of a series of policy recommendations. Speed up the construction of the bond market, to promote the integration of State-owned enterprises, also is to promote and facilitate the development of State-owned enterprises and optimize the capital structure. This paper hope that these advices can help next reform in the State-owned enterprise .