China's Listed Companies, The Financing Structure Optimization Analysis

The problem about corporate capital structure optimization (CSO) is the kernel of finance all along, which is what the finance economic researchers and company operators face and is related to many factors. The purpose of this paper is to discuss the optimization of the listed corporations' financial structure in China. CSO helps not only allocate resources, but also improve the performance of the corporation. The capital restructuring goes with the process of the asset securitization, which will affects the financing resources and forms. The fund is the determinant factor of the corporation. Different financial structures have different effects on the corporation operation. CSO can improve the performance of the corporation, and it is also important to the development of the economy of China.The paper firstly compares the financial theories at all times and in all over the world and analyzes the financial structure of America, German and Japan. The paper makes out the problems of the financial structure of China. In this paper, we construct a finance theoretical model, in which we use a linear equation to denote the possibility of the invest succeeding. From this model, we draw three conclusions considering the creditors and the shareholders' rights and interests. If the new invest has positive effect on the market value of the corporation, the equity financing is the best. If the effect is negative, the combining-financing is the best, in which the creditor is the positive financer and the shareholder is the passive cooperation partner. When the listed corporations prefer equity financing and there exist the liquid-stock and illiquid-stock, the corporations easily have the tendency of the over-investment. So the funds are left unused and wasted. The paper discusses three different financial strategies, which serve as a theoretical model for the optimization of the financial structure problem.Finally, seeking the best financial structure also needs the support of the policy and the developed capital market. We must put more efforts to supervise the liquid-stocks market and reduce the state-held shares. The capital market needs continually perfect in China under the situation of the opening world.