Research On Capital Structure Optimization(CSO) Of Listed Companies In Jilin Province

Capital structure refers to the composition and property relation of an enterprise's various long-term rasing fund resources. The most optimal capital structure can keep the weighted average cost of capital(WACC) of an enterprise to a minimum, and maximize the creating value of a corporation as well so as to highly mobilize the initiative of stakeholders. Capital Structure Optimization (CSO) of listed companies is a dynamic process. Through an empirical analysis of the major influencal factors on capital structure of listed companies in Jilin Province, the paper offers theoretical and experimental evidence for CSO of listed companies in Jilin Province and puts forward reasonable suggestions for CSO of listed companies in Jilin Province.Based on the western capital structure theory, researching methods of other scholars and our research results in this aspect, the paper is completed by methods of theoretical analysis and experimental research. Firstly, theoretically using the method of descriptive statistics, the paper analyses the features, situation and problem of capital structure of listed companies in Jilin Province. It analyses and sums up the factors influencing the profitability, property guarantee value, solvency, asset management, growth, scale, rate of total asset in-debt, rate of flow asset in-debt and long-term asset in-debt of capital stucture of listed companies in Jilin Province. Secondly, in order to better analyse and summary the influence between various factors of capital structure of listed companies in Jilin Province, the paper constructs a mathematical model with statistical analysis methods of multiple regression and gradual regression. Finally, experimenting on financial datas of 34 listed companies (first three quarters of 2007,2008,2009) of Jilin Province in Shanghai Stock Exchange and Shenzhen Stock Exchange, the paper analyses and summaries the adequate experiment in compliance with the theory of multiple regression and statistical analysis of gradual regression.The paper obtains the following conclusions by theoretical analysis and experimental verification:1, the solvency, asset management and growth factors have significant effects on rate of total asset in-debt; 2, the solvency and growth factors have significant effects on rate of flow asset in-debt; 3, asset management and scale of corporation have significant effects on long-term asset in-debt. The experimental result verifies the above three conclusions, and technically explores the avenue for CSO of listed companies in Jilin Province as well.