The Study On Capital Structure Of The Listed Company In Steel Industry

Steel industry plays a very important role in national economy as a fundamental industry for a long time, and it has very important status in the national economy. China has entered a new turn of economical growth cycle since 2001. The demand of steel are increasing with the economic development day by day. It brings the good development opportunity for Chinese steel industry especially for the listed company. At the same time, the steel company is facing production capability surplus circumstances. As a capital-intensive industry, how to select their financing mode (equity finance and debt finance) to the listed companies is extremely important. Which factors affect the selection of listed company's capital structure? How do the steel industry listed companies optimize their capital structure to meet all sorts of threats and opportunities? The further research about these series of issue is worth doing.This paper totally is divided into four parts. The first part shows research purpose and means. The second part reviews the theory on capital structure at home and abroad in order to help China steel industry listed company find their theoretical basis of optimum capital structure. The third part analyzes capital structure of the listed company in detail. In the third part, firstly to review steel industry listed company capital structure change, secondly to carry on the practical analysis for the affecting factor of asset liability ratio, from the unreasonable capital structure and asset liability ratio. In the result, finding out the profitability, the fluidity, the guarantee and the stock structure are the most primarily influential factors. The last part explains the decision issue which the steel industry listed companies face based on these four influence factors. Then give the listed companies the optimization recommendation based on their own characters and financing environment.