A Case Study On The Dynamic Adjustment Of Nanjing Iron And Steel Capital Structure Under The Background Of Deleverage

With the continuous development of statistical data methods,the research direction of capital structure has changed from the initial static perspective to the dynamic perspective in recent years,and the research on the dynamic adjustment of capital structure has become popular.However,most domestic scholars conduct empirical research based on local adjustment models,and rarely combine specific practical cases.Moreover,under the influence of various factors,the adjustment of capital structure of each enterprise has its own unique features,and the changes in adjustment path,adjustment cost and adjustment speed are all different.Therefore,the case study of capital structure adjustment has irreplaceable significance.At the same time,based on the theory of financial contingency,the adjustment of corporate capital structure will be affected by macro factors.Among many macro factors,deleveraging,as a policy task vigorously promoted by the state,has a direct and obvious impact on the capital structure of enterprises,and it is bound to The dynamic adjustment of corporate capital structure has a role to play.In the context of deleveraging,it is of great significance to study how the corporate capital structure will be adjusted and how it responds to the policy,not only for the enterprise itself,but also for the industry to leverage and prevent risks.The steel industry is a key area in structural de-leveraging.At the same time,the steel industry is a national pillar industry and has a high correlation with macroeconomic policies.The state has also introduced many support policies to solve the problem of excessive leverage in the steel industry.Therefore,in the context of the deleveraging policy,the study of the capital structure adjustment of the steel industry has typical and practical significance.Among them,Nanjing Iron and Steel Co.,Ltd.,as a typical private steel enterprise,took advantage of the opportunity to make full use of policy opportunities and actively adjust the capital structure downwards through market-oriented debt-to-equity swaps,and achieved remarkable results,providing other companies with A valuable experience that can be learned.Different from the traditional capital structure research,the research in this paper combines the dynamic trade-off theory and the financial contingency theory,which not only realizes the dynamic research of capital structure,but also considers the actual influence of external factors on it.And the local adjustment model was applied to the case study.This paper first defines the meaning of the dynamic adjustment of capital structure,and introduces the influencing factors and content of the dynamic adjustment of capital structure on the basis of relevant theories.Then according to the financial situation and operation of Nanjing Iron and Steel Co.,Ltd.in 2012-2018,combined with the background of the deleveraging policy,through quantitative calculation,analyze the dynamic adjustment of the capital structure of Nanjing Iron and Steel Co.,Ltd.,including adjusting the path and adjusting the cost.And adjust the speed analysis.After that,it analyzes the positive and negative effects of the dynamic adjustment of the capital structure of the enterprise,and finally draws the conclusion and enlightenment of the dynamic adjustment.In the process of writing articles,this paper reviews the research literature based on the literature method,and uses quantitative and qualitative analysis methods to deeply explore and analyze the role of capital structure dynamic adjustment in corporate financial practice.Through the analysis and research of Nanjing Iron and Steel,this paper summarizes the specific impact of the deleveraging policy on the adjustment of capital structure,and draws the enlightenment that can be widely applied: For enterprises,they should be able to make good use of policies and adjust the capital structure in a reasonable and timely manner.And establish a dynamic adjustment mechanism of capital structure to meet the requirements of long-term sustainable development.Only in this way can enterprises seek to develop in a complex and ever-changing external environment in the invincible position of de-leveraging and anti-risk,and then they can seek a place in the industry competition.