Research On The Management Of The Capital Risk From The View Of Dynamic Adjustment Of Capital Structure

The Present Paper mainly deals with the financial risk management of the listed company from the view of Dynamic adjustment of capital structure, using Blake-Scholes Option Pricing Model to analyze the relationship between the changes of capital structure of the listed company and the financial risk management. Based on the Dynamic adjustment of capital structure theory, this article believes that the macro factors the listed company itself, together with the cost of the capital adjustment deviated the capital structure from the optimal value of the structure under Blake-Scholes Option Pricing Model when the capital structure corresponds to the elasticity of the call option based on corporate value, thus removing the direct influence of the tax shield value from the capital structure. The financial risk is not managed by influencing the accounting profit of the listed company.Further more, once the theory of market timing is introduced into the analysis of the relationship between dynamic adjustment of capital structure and management of financial risks, the author believes that the increase of current liability, on the premise that term structure of the company is discriminated, will send a signal to the securities market that the company possessed strong profitability resulting in the rising of the enterprise value. But the key to maintain the stability of the value of listed company,to keep the rate of return on investment of equity investors and to avoid the capital risks of the company, is to introduce long-term liability and the governance efficiency of debt financing along with it to realize the steady rise of the corporate valve and the reduce of the capital risks.In the very part of empirical analysis, the paper was inspected with the theory analysis of data statistics of the A-share listed company in2010and2011. The result is that the function of debt management of long-term Liabilities was not well performed in domestic while the current liability is not used in debt management. The rise of the corporate value aroused by Debt-to-assets ratio mainly comes from the positive signal from the adjustment of capital structure. And, this,will not improve the Performance Management of capital structure essentially. The theoretical significance of capital structure and corporate accounting profits’relationship fail to pass the empirical test, which indicate that the value of the tax shield did not affect so much on the corporate accounting profit and under the influence of agency costs, the effect of capital structure made on corporate accounting profits is not so obvious. Now here we come to three political recommendations with the combination analysis of theory and experiment:(1) optimize the capital structure of listed companies and introduce long-term debt,(2) improve the relationship between banks and enterprises,(3)attach great importance to the long-term benefits of capital structure adjustment.The main innovation point of this article lies in the development of the listed company financial risk analysis of black-scholes option pricing model, it introduced in the model with something which can reflect the variables growth rate of the market value of listed companies and the combination of analysis of the market timing theory and the dynamic adjustment of capital structure theory help the listed company find the relationship between the capital structure and the financial risk control of listing corporation. The study of financial risk control started from the point of the most primal factors to financial risk considering that equity investors yields are not guaranteed to be the best source of financial risk endogenous factors. This is different from other domestic scholars whose empirical studies use foreign financial risk prediction variables as variables to the level of financial risk of listed company agentsThe shortage of the research is that it chose the listed company financial risk control options model as the theoretical basis of research, which confine most of the research to the relationship of capital structure and listed company financial risk control. The neglecting of many factors related to the financial risk and the not well controlled of selected control variables in the empirical analysis will have a potential impact on the stability and significance of the article’s empirical research results. ST company’s financial datas are not eliminated from the empirical study,so these abnormal index will also affect the stability of the model.