The Research On The Capital Structure And Its Strategy Of Chinese Listed Companies In Steel Industry

Since it has only tens of years for our own country to develop modern capital structure theory, the capital theory isn't mature and greatly lagged, but scholars of our country have paid more attention of it. The listed companies in steel industry are elites of all companies in steel industry, but their capital structures are not reasonable. So this paper has the aim of find the optimal object, optimal principles and optimal measures of our listed companies in steel industry, and it will help the practices.This paper's analysis is closely around the capital structure and its strategy.Firstly, this paper defined the definitions of the capital structure and the strategy of capital structure. Then it recalls the history of analysis of capital structure both theoretically and empirically.Secondly, this paper makes the maximum value of enterprises as the optimal object of our listed companies in steel industry. Then, by trade-off model this paper theoretically described the existence of the optimal capital structure of our listed companies in steel industry. Then it makes an econometrics model between the debt equity ratio and the enterprise value based on Panel Data Model. So it clearly got an optimal capital structure and a reasonable interval. Then it made the optimized capital structure model of Chinese listed companies in steel industry.Thirdly, based on the comparison between the listed companies in steel industry both domestics and abroad, it asserts that the optimal principles of our listed companies in steel industry are the aim principle, the elastic principle and the development principle. Then, the paper did an empirical analysis of the determinants of our listed companies in steel industry using principal component analysis and linear regression model. Then it concluded that the size of enterprises, profitable abilities, growth, non-debt taxes shields and the concentration of stock rights both have negative correlations with the capital structure. Finally, this paper made the strategic model of capital structure of our listed companies in steel industry based on Goal Programming and got a reasonable solution. Then it refers to some optimal measures from analysis of examples, which are decreasing the current liabilities, increasing non-current liabilities; stick to profitable abilities; use non-debt taxes shields fully and lower the concentration of stock rights to some extent.