Research On Optimizing Capital Structure Of Jilin Forest Industry Co.,Ltd.

The development of state-owned forestry enterprises has an important impact on the sustainable development of forestry. In recent years, the state-owned forestry enterprises faced the " two crises" dilemma,with week management capability, low operation efficiency. They mainly rely on the government funding and bank loans as the development of working capital, and their capital structure is relatively simple. In recent years, with the reform of state-owned forestry enterprises, the state-owned forestry enterprises and state-owned forest areas have achieved remarkable results, especially in Jilin Forest Industry Group. Jilin Forest Industry Co., Ltd. as the only listed company after the restructuring has a greater advantage in terms of management mechanism, capital market operations, but there are still some problems in its capital structure. Therefore, the study of Jilin Forest Industry Co., Ltd for is to identify the affecting factors of the capital structure of Jilin Forest Industry Co., Ltd. and design a model to optimize the capital structure. Combining with the theory of optimizing capital structure and financing strategies, putting forward suggestions to optimize the capital structure of Jilin Forest Industry Co., Ltd. has great f significance or the development of other state-owned forestry enterprises.In this paper, with the theory of capital structure and financing,combining with the research results of domestic and foreign scholars to optimize the capital structure and financing research, summarizing and drawing on the experience of financing strategies of foreign forestry enterprises, we build a model to solve the capital structure and financing problems of Jilin Forest Industry Co., Ltd. and put forward suggestions to optimize its capital structure. In this paper, the SPSS20.0statistical analysis tools was used for empirical analysis to identify the factors of affecting the capital structure of Jilin Forest Industry Co., Ltd. The result is that the factors are:the firm size, profitability, short-term solvency, growth capacity and operational capabilities. By constructing an optimal capital structure model, the recommendations to optimize the capital structure was made. Jilin Forest Industry Co., Ltd. can take advantage of the government’s preferential policies, increase the proportion of long-term borrowings; financing through equity and debt capital markets; using forestry financial system of financing.