Discussion On The Optimization Of Capital Structure Of Listed Companies In China

It can be found that although most listed companies remain lower ratio to liabilities of assets and some companies' lower ratio to liabilities of assets are close to zero, those companies are longing for financing by issuing shares, which doesn't accord with theory of west capital structure and has disadvantageous influence to listed companies in the long term. It is necessary to analyze capital structure of public company in our country and study actuality and forming reason of capital structure and measures of optimizing capital structure aiming at actuality of studying capital structure in our country.The actuality of capital structure of the listed companies in our country- lower ratio to liabilities of assets, stock financing far beyond debt financing- is expatiated in the paper using correlating data of listed companies that is based on analyzing modern west enterprise.The paper focuses on analyzing forming reason of capital structure of the listed companies in our country and depicting the reason and measures of optimizing capital structure. Moreover, individual opinion about how to applying theory of capital structure is put forward.There are five parts in this paper.In first part, theory of capital structure in west is introduced to offer support of theory for studying capital structure of listed companies in our country by describing modern theory of capital structure (MM theory, balance theory) and new theory of capital structure.In second part, the actuality of capital structure of listed companies in our country is introduced, which is expressed in three aspects-lower ratios to liabilities of asset of devices, unreasonable structure and higher active liabilities, lower financing proportion and preferring to stock financing.In third part, the realism and rationality of capital structure of listed companies in our country is introduced by condition of real market in our country. The real condition of economical environment of listed companies in our country are depicted as follows:1. Stokes of nation and juridical person oppose absolute position.2. Structure of company management is unreasonable.3. Bond market is underdeveloped and verity of capital structure is single.4. The creditor s right can t be guaranteed.5. Mechanism of excitation for operator is not perfect.6. Total payoff is low.7. Individual income tax sometimes may reduce market value of enterprise.8. Distribution of dividend is low and actual financing capital is low.In fourth part, necessary of optimizing capital structure is introduced. Though the listed companies in our country has rationality at present, integrated capital cost of enterprise is changed following economical condition of the listed companies continuous developing in the phase of high- speed economical deployment in our country and then the capital structure is changed. This trend is depicted as follows.In fifth part, optimizing capital structure of the listed companies in our country is introduced. The low integrated capital cost of enterprise of the listed companies in our country does not created by unsuitable capital structure, but is created by the faultiness of economical system and structure of management of company.The measures of optimizing capital structure of the listed companies in our country is described as follows:1. Developing and enriching bond market2. Optimizing stock structure3. Standardizing behavior of stock market4. Improving structure of companies' management5. Adjusting structure of companies' liabilitiesIndividual new opinion:(1) Though it has rationality at present, capital structure of the listed companies in our country is not suitable for continuous economical development.(2)Idea of companies' management of EVA is introduced and evaluating way of outstanding achievement of EVA instead of traditional evaluating way of outstanding achievement is put forward. Thus, the benefit of manager and stockholder is combined in order to progress external financing for manager depend on market value of enterprise.(3)Theory study o...