Research On Capital Structure Dynamic Optimization For The Listed Companies In Electrical Industry

The electric power enterprise plays an important role in driving the growth of the national economy, therefore, accelerating the development of the electric power enterprise in our country has become an important and urgent strategic mission. The development of the electric power enterprise needs debt capital and equity capital, and the capital structure of the enterprise reflects the proportional relationship between these two. Maximizing the value of the financing costs and financing risks negative affect maximizing the value of the enterprise, but differences of the capital structure affect the financing costs and financing risks, which in turn affect the enterprise value maximization. Optimize the capital structure helps to maximize enterprise value, the maximization of corporate value then helps to improve the enterprise’s ability to raise funds, which will alleviate the demand for capital. Therefore, the study of the optimization of the electric power enterprises capital structure is very important.For research of the electric power enterprise capital structure, scholars mostly focus on the research of solving the funding difficulty, optimizing capital structure on financing ways and financing strategy sides, but ignores to take the impact of environmental factors by time and time changes into consideration, thus don’t reflect the essence of the dynamic change of capital structure. This thesis bases on the impact factors of enterprise capital structure, analyzes how to make dynamic optimization behavior by impact factors of enterprises, then proceeds to how to achieve dynamic optimization for enterprises. Since the static optimization is a time optimization, and dynamic optimization is a process optimization, the static optimization is the basis of the dynamic optimization. The thesis thus combines the electric power enterprises dynamic optimization and static optimization. The purpose of this thesis is to guide electric power enterprises to determine their direction and adjustment, take measures to make dynamic optimization of the capital structure spontaneously in order to achieve their strategic objectives.This thesis includes six chapters, main contents of each chapter are as follows:Chapter One is an introduction, demonstrates the background, importance, framework and methods of this research.The second chapter is a summary of the capital structure dynamic research. The foreign scholars build a dynamic model of the capital structure, put the dynamic factors into the capital structure research while the domestic scholars make empirical tests of the Chinese enterprises mainly based on the theoretical model proposed by foreign scholars.The third chapter is theoretical analysis. This chapter first introduces the concept of the capital structure dynamic optimization, and then reveals on the development of the MM theory, the static trade-off theory as well as the dynamic trade-off theory. The famous MM model as the basis of the modern theory of capital structure, produces a great impact. Due to the presence of tax and other factors, in the mid-1970s, scholars proposed static trade-off theory to make up for the lack of MM theory. Dynamic trade-off theory proposed in1989, stressed that the optimal capital structure of the company is changing, as a result, we could see the existing problems of Chinese research of the static capital structure theory.The fourth chapter is the theoretical analysis of capital structure dynamic optimization. For time, environment, and other factors will have an impact on capital structure, optimal capital structure is not static, so it is necessary to make the dynamic optimization of capital structure. Through analysis of feasibility of the capital structure dynamic optimization, we further describe the dynamic characteristics of the capital structure, then get the essence of the capital structure dynamic optimization.The fifth chapter is the analysis of the existing problems of the listed companies’ capital structure and the causes. Analyzing the characteristics of the electric power industry will help to understand the causes of the electric power listed companies’ status, and then study the problems of electric power companies and make cause analysis.The sixth chapter is analysis of influencing factors on the electric power listed companies’ capital structure. Macroeconomic factors consists socio-economic environment, financial market environment, the legal environment, industry environment. Microeconomic factors consists company size, profitability, growth, asset structure, etc. Based on the analysis of these factors, we proposes the optimal capital structure dynamic analysis methods.The seventh chapter is a case study-an example of Wenergy. This section analyzes the Wenergy’s capital structure, make an suggestions of its capital structure optimization.The eighth chapter is the countermeasures of listed companies’ capital structure dynamic optimization. Based on the whole thesis, we give Countermeasures of Chinese electric power listed companies’ capital structure dynamic optimization.The main contribution of this paper is a combination of dynamic optimization of the static optimization process point in time the policy established the direction and extent of the adjustment, and adjust the speed to select.