The Inspiration To The Financing Strategy Of Chinese Multinational Companies From The Study On Western Multinational Companies' Capital Structure

Transnational corporations, as one of the most advanced forms of business organization, make an enormous and far-reaching influence to the current world economy. But the financing of multinational companies and their strategies has often been assumed to be a constant in the financial management of the research on Chinese and foreign multinational companies-assuming that the financing capacity of multinational companies is boundless. Chinese multinational corporations compared to the mature Western multinational companies are still starting with the exploration stage. Its development is constrained by the shortage of funds to a large extent. Then, what are the characteristics of factors in the financing of transnational corporations? If there is some intrinsic links between the capital structure and the company's financing strategy? What's enlightenment that the commonness of Western multinational companies on financing and capital structure can bring to the development of our MNC? For the above thinking, the author takes the affiliation between Western transnational capital structure and financing strategies of transnational corporations in China as the object of research.Corporate Finance is a composite of many factors, and the MNC is different from an ordinary business on management features and financing environment. Through analysis of the literature search, the author found: in the financing system, the capital structure is a cross-cutting which can contact the main factors of financing. Make a standardized and empirical research by linking the MNCs'capital structure and its influence elements and find out a general sense, it will have a theoretical value and strong practical significance in establishing our financing strategy of transnational corporations and make them getting into a virtuous and healthy development pioneering.Based on the above thinking, the author makes much search, review of the international and domestic research literature as basement .Start from the status of the capital structure of Western multinational companies, the author analyzes and summarizes the capital structure of the multinational companies' determinants and optimization strategy. After contrasting with the reality of Chinese financing multinational corporations and analyzing the differences and the reasons, the author gives own thinking and ideas.At first, start from the empirical evidence the capital structure of Western multinational companies, from the impact of various factors on the impact of leverage point; make a detailed analysis on the mechanism and its path that impact of MNC on the capital structure.Second, anglicizing and researching on transnational capital structure optimization objectives and ways. Within this total, make the capital cost study focus on the mode of financing that multinational companies investing abroad and using quantitative analysis method to describe these financing costs. Finally, gets the optimization strategy of capital structure.At last, make the financing strategy - financing capital structure- objectives as the analytical framework, stress the status and role that capital structure of the financing strategies as a major factor, link to our capital structure, then,base the comparison to the Western multinational companies financing and make some optimization strategy on Chinese multinational corporations financing strategy.