JL Automotive Group Capital Structure Research

Capital structure in financial management plays an important position. The choice of capital structure will not only affect the company's market value and business stakeholders, which with the corporate governance structure and corporate operations is closely related to the macro and micro environment. Since 1958 written by Modigliani and Miller suggests since MM theorem, economists have loosened the theoretical hypothesis of the MM theorem. They have attempted to agency theory, balance theory, theory and empirical corporate control to study the angle of the main factors which influence the choice of capital structure. Capital structure theory in the Western developed countries has become a more mature theory. This paper argues that in the present complex and changeable circumstances , the JL Bus context of the capital structure of research, analysis, optimizes their capital structure to increase corporate value and influence. This is the development of enterprises is very necessary.This article reviews the current capital structure of the theory and results. The paper introduce the JL Bus as the research object, pay attention to its recent financial statements capital structure of liabilities, and owner's equity structure, analysis of enterprise on the financing tools using, liabilities of term structure and equity of concentration, financial lever, capital structure elasticity, taxation and cash flow and its influence on enterprise. In this paper, In domestic and overseas theories and research related to capital structure based on the results. This paper analyzes the status of JL Bus capital structure. The formation of its capital structure and the characteristics of the vertical component compared with the horizontal comparison in the same industry companies. This paper analyzes the capital structure of the JL Bus main problem from the analysis of macro and micro aspects. According to the actual situation,The perspective of policy-makers have put forward ways to optimize capital structure of JL Bus. In this paper, the implementation of protection of capital structure optimization recommendations.