Risk And Capital Structure Optimization Of Listed Companies In China's Household Electrical Appliance Industry

Over the past decade,the manufacturers of our China household electrical appliance have formed plenitudinous competition in various sides as products, pricing and promotions though differentiation,reorganization and joint of this industry.However,in recent years,that this industry has exposed its weakening in the domestic market,and repeated frustration in the international market have revealed some defects of this industry such as lacking of core technology,product homogeneity,inadequate in brand building,erc.Development history and current situation of the China's household electrical appliance industry both lead to the risk of being listed companies in this industry.The risks of an enterprise are associated with the capital structure of the enterprise itself.This article will take an insight into the listed company's risks in household electrical appliance industry,including financial risk,operational risk,bankruptcy risk.Begin with the theories of capital structure,this paper proposed how to achieve the optimal capital structure which lead to maximize enterprise value by researching on capital structure of china-listed companies.In addition,this article measure the probability of bankruptcy making use of Bayesian formula,then point out optimal capital structure model under which maximize shareholder profit on the basis of some parameters springs from research on bankruptcy by altman.In the end,I put forward a case analysis using this model.