Discussion On The Dynamic Adjustment Of The Capital Structure Of W Group

After the financial crisis in 2008,the real estate industry has become an important section to contribute to the prosperity of China,and it has become one of the most profitable industries in China.But due to the housing rigid demand,housing prices and psychological expectations of the influx of speculative capital and other factors,housing prices have been rising continuously,and then the state has increased macroeconomic regulation and control efforts to vigorously promote a variety of land policy,fiscal policy,monetary policy and Income tax policy.In recent years,most scholars usually choose the financial data of real estate listed companies in Shenzhen and Shanghai stock markets as the research samples,regard the internal and external environmental factors as the target financial leverage fitting variables,use the enterprise target financial leverage as the dependent variable,make an empirical study of adjustment by using dynamic Trade-off theory model.However,the theory of capital structure is not only used to explain the differences in the capital structure of different enterprises,but rather to explain the reasons why enterprises are unable to optimize the capital structure,find the optimal capital structure for enterprises,and then fully consider the internal and external factors conditions,enterprises can use all kinds of investment and financing means to optimize the capital structure.In the current situation,this paper takes the W group as an example,and uses the case analysis method to study the theory and concrete practice of the dynamic adjustment of capital structure.On the basis of the previous theoretical research,combined with his own understanding of the dynamic adjustment of the capital structure,the author thinks that the target capital structure exists,and the macro and micro factors will jointly determine the target capital structure of the enterprise.The dynamic adjustment of capital structure of W group should pay attention to the following three aspects: first,the proportion of debt financing and equity financing structure.second,the proportion of short-term debt.thirdly,the relationship between the adjustment cost and adjustment time and adjustment speed.As a leading enterprise in the real estate industry,W group has a flexible and effective way to adjust the capital structure,so the study of the dynamic adjustment of the capital structure of W group is of great importance in academics.First of all,based on the domestic and abroad theoretical research on the dynamic adjustment of capital structure,this paper expounds the meaning,characteristics,adjustment methods and influencing factors of the dynamic adjustment of capital structure.Secondly,this analysis method combining quantitative and qualitative data,based on the financial statements of W group from 2009 to 2015 as the research sample,combined with the financing behavior of W group,in-depth analysis of causes of the key factors of capital structure adjustment effect of W group and the capital structure adjustment measures.As the real estate industry is a capital-intensive industry,real estate companies usually have a higher asset-liability ratio,and a higher degree of dependence on bank credit funds.According to the theory of financial contingency,we can see that the target capital structure is changing all the time,the external economic environment affects the future development of the enterprise and the internal capital structure,but the real decision of the enterprise capital structure is the enterprise's own factor,its own factors change with the external factors.Finally,it will be reflected in the adjustment of the capital structure of the enterprise.The development of the capital structure of the enterprise is also closely related to the strategic planning formulated by the enterprise.After this paper,the financial strategy matrix is used to quantitatively analyze the future sustainable development of the enterprise,and compare the capital structure of the W group with the horizontal industry as well as the vertical historical data,so as to distinguish whether the adjustment of corporate capital structure is in line with expectations,summed up the dynamic adjustment of corporate capital structure in the direction of the future direction of the development of enterprises.Deriving from the analysis of W Group's capital structure adjustment,the following conclusions and conclusions are drawn.Firstly,based on the high asset-liability ratio of real estate listed companies and the excessive dependence of bank borrowing,the enterprises must reasonably determine the target capital structure according to their own situation.Change the external economic environment,explore the law of dynamic adjustment of capital structure,explore a variety of financing methods,the establishment of real-time monitoring structure of capital structure.Secondly,Base on the consideration of achieving of enterprises,enterprises need to improve the risk control system,and strictly control the asset-liability ratio.Only in this way,enterprises in the complex and volatile market maintain a strong competitive and strong vitality.