| How to determine the capital structure is very important in a company's financial decision and theory. Some factors influence the decision of capital structure and the industry is one of them. The author chooses the electrical home appliance industry to study, by means of qualitative and quantitative analysis, theoretical and empirical research as well as antitheses, systematically studies on the capital structure of electrical home appliance industry.The theory analyzes the capital structure of electrical home appliance industry: Firstly, the capital structure of this trade is higher than that of other trades in industry, author estimates the capital structure is unreasonable. Secondly, from the proportion of debts, we could see the current liability is too more. Thirdly, the author analyzes the data in annals report form 2001 to 2005, we come to the conclusion that the companies of the electrical home appliance industry are according to the special order to raise capital. The paper also analyzes the relationship between capital structure and firm value or firm performance in electrical home appliance industry by empirical research. Using least square method, penal data from 19 companies in 2002-2006, are regressed .We find the relation of two indexes which respect capital structure and firm performance is not same.The other important problem in this paper is how to improve the capital structure. What is the best capital structure? Generally speaking, we have four standards one of which cost of capital is. In this paper, the author chooses the company of GREE to introduce the standard. In the end, the author puts forward some methods to optimize the capital structure of electric home appliance industry. |
