Quantitative Research On The Influence Of Optimal Capital Structure On Enterprise Value

The academia had started to focus on the relationship between capital structureand enterprise value and wanted to identify the optimal capital structure exists or notsince the capital structure theory was born. The diversified enterprise funds generatedifferent capital structure, conflicts of interest and financial risk, thus affect financingcosts, economic benefits and market value. When environment of enterprise areconstant changing, how determine the optimal capital structure which can maximizethe value of enterprise is an ultimate goal for the pursuit of financial management.Over viewing the capital structure theory, and research situation between capitalstructure and enterprise value at home and abroad can be found: almost scholarsidentified that a significant relationship between capital structure and enterprise value,but because of the time and space, the selected samples, methods and many otherfactors are different, the relationship between them are positive or negative correlationhasn’t only the conclusion until now.This paper focuses on correlation between capital structure and enterprise value,establishes a prediction model of the optimal capital structure, and references theresidual income model for building a model about optimal capital structure andenterprise value. Using about627listed companies’ financial data and economic datawith stata11.0for empirical analysis. Take deviation of actual capital structure andoptimal capital structure as a breakthrough point, quantitative analysis the correlationbetween the optimal capital structure and enterprise value is the innovation points.Through empirical analysis shows that the deviation generates from the actualcapital structure and the optimal capital structure has a significant negative influenceon the enterprise value. After Sample subdivision, we found that negative deviation ofthe capital structure has a significant negative influence on the enterprise value, andthe positive deviation has a significant positive influence on the enterprise value. Butthis paper doesn’t deny the existence of optimal capital structure, the results departurefrom the capital structure theory because Chinese weak effective capital markethaven’t developed mature, asymmetric information misleading investors’ investmentbehavior, make the stock price of enterprises which the higher the Asset-liability ratioare blindly up in Chinese stock market, it’s the phenomenon of stock market bubble.