A Study On The Capital Structure Of Building Material Industry-Based On The Dynamic Model

The choice of capital structure is the core of the enterprise's financial decision-making, The results showed that the capital structure of many different industries there are significant differences in capital structure. But many theoretical and empirical researches to the industry as a significant factor alone explore its impact on the capital structure. The research of the capital structure of a particular industry is rather scarce. The building material industry as a major materials industrial, through a series of restructuring the transformation process is gradually becoming mature. Compared with other industries, the industry has had a significant feature. To remove the interference factors in multiple industries and research industries, this paper carries out an in-depth study on the capital structure of this industry.This paper first reviews the basic theories of western capital structure, focusing on the review of capital structure theory of the trade impact on the capital structure of the theoretical and empirical literature. Then through the use of statistical data, it describes the financing of the current status of China's building materials industry and the capital structure of the status quo, and conducts the empirical testing for the differences of the capital structure between this industry and others. Test results show that there was a significant difference in the capital structure of the building materials industry and others, it was necessary to do a separate study. On this basis, it summarizes the elements that have a significant impact on the capital structure from the traditional view of building materials industry factors and characteristics of the capital structure. After doing a brief theoretical analysis, it uses dynamic adjustment of the capital structure of China's building materials industry capital structure model of the dynamic process of evolution for a detailed analysis. The empirical results show that the factors affecting the capital structure of the building materials sector in the capital structure of the general characteristics displayed at the same time, This also reflects its own characteristics of the building materials industries; static models are more scientific and rational than dynamic models and multiple regression model. The results also show that the sub-sectors of the capital structure is feasible, but also more scientific. The coefficient of dynamic model of the building materials sector could be as much as 95%. On the basis of empirical research of the building materials industries in the capital structure of the dynamic process of evolution, finally, from the goal of optimizing the capital structure, the optimization of the external financing environment and capital structure optimization strategies, it discusses on how to optimize the capital structure of China's building materials industry in the paper.In this paper, it utilizes dynamic model to study the capital structure of China's building materials industry, in order to propose the capital structure optimization of China's building materials industry strategy from the modest industry perspective. However, in view of the author himself to the depth industry study, the feasibility and operational optimization problems is not yet mature and subject to further study.