Study On The Capital Structure Optimization Of AB Automotive Co.,Ltd

MM theory has attracted wide attention both in academia and practice since it was put forward,and more and more studies on capital structure have been made.For the business managers,the optimization of capital structure has become a major financial goal.In the development of modern enterprises,the capital structure of enterprises has an impact on the market value of enterprises,and the magnitude of the impact depends greatly on whether the capital structure is reasonable.So far,the issue of capital structure has become an unavoidable important issue in the management of enterprises.At the same time financing,financing costs will have an impact on the corporate capital structure.Entering a new era,China’s auto industry is growing rapidly and becoming a pillar industry.Nowadays,the integration of urban and rural areas has become the basic pattern of economic and social development in the future.In this regard,the country has promulgated a large number of encouragement policies.Generally speaking,China’s automobile industry has been moving towards a rapid development stage.The sustained and rapid development of the automotive industry has played an increasingly important role in the growth of the national economy.However,under the continuous development,the problem of capital structure severely limits the development of the automobile industry and must be treated with caution.AB Automobile Co.,Ltd.is the first tax-paying enterprise in Liaoning Province in our country and has a certain influence and status in the automotive industry of our country.In this paper,the research activities selected AB Automotive Co.,Ltd.as a sample of enterprises,capital structure of the enterprise assets,liabilities,financing and other aspects of research and analysis,found that one of the problems and in-depth analysis of the causes of the problem.Finally,we put forward corresponding solutions to the problem.First,it analyzes the status quo of the capital structure of the domestic auto industry.Then it makes a horizontal and vertical comparison about the capital structure of the AB automobile company.At the same time,static and dynamic perspectives are selected,the capital structure of the company is analyzed,and based on this,optimized interval is defined.In order to optimize the capital structure,this article provides advice and safeguard measures.This paper argues that there are such problems in the capital structure of AB Automotive Co.,Ltd.as the structure of liabilities is unreasonable,the ratio of current liabilities is relatively large,the financing channels are narrow,the financing tools are simple and the ratio of asset-liability is low.We should proceed from the aspects of stabling the ratio of asset-liability,effectively playing the financial leverage effect,reducing the proportion of current liabilities,optimizing the corporate debt structure,making positive use of diversified financial instruments to raise funds and enhancing enterprise risk control ability.The contributions of the research activities carried out in the article are mainly reflected in the following aspects:The article selects a certain sample of automobile industry as the research object and conducts research to provide some reference for optimizing the capital structure of the domestic automobile industry and related enterprises.