Discussion Of Dynamic Adjustment Of Capital Structure Of HW

With the advent of the knowledge-based economy,the development of science and technology has become the main ways for countries to increase their comprehensive national strength.High-tech firms are also increasingly becoming new growth points for the national economy.The disadvantages of traditional extensive economic growth methods are increasingly apparent,the advantages of intensive economic growth methods have became more prominent.Through the adoption of new technologies and new processes,more scientific and technological factors have promoted economic development and improved people's work efficiency and quality of life.From the rapid development trend of high-tech enterprises in recent years,it can be seen that because of the special characteristics of the industry,the company's operating risks are high.To achieve the maximization of the value of the company,the total risk is controlled within a reasonable range,and the company needs to reduce its own financial leverage to a very low level.Therefore,starting from the long-term capital financing policy of enterprises,seeking a correct perspective to explore the dynamic adjustment process of the capital structure of high-tech enterprises is very necessary,which has a strong practical significance for promoting the development of high-tech enterprises in China.At the same time,since Modigliani and Miller proposed the MM theory in 1958,the academic community's dynamic adjustment of capital structure focuses more on adjustment costs,adjustment speed,and adjustment timing,the research data used are also mainly based on large samples.The data is used for empirical analysis of the entire stock market or some industries.However,because each industry has its own characteristics,each company in the industry also has its own conditions.If a typical company is selected from high-tech industries for case study,the dynamic adjustment process of the capital structure is examined and described,and the process can be analyzed.The path and mechanism behind it have made important contributions to the study of the dynamic adjustment of the capital structure.Most the research on dynamic adjustment of capital structure mainly relate to the market value of the company and operating performance,mainly including the theory of dynamic adjustment of capital structure,adjustment costs arising from the adjustment process,then affecting the adjustment speed and choosing the appropriate adjustment timing.The classic MM theory,pecking-order theory,dynamic trade-off theory and market timing theory all accept the target capital structure,in the meantime,explore the dynamic adjustment of capital structure to maximize the value of the company.Many researchers from China and foreign countries also focus their research on the process of dynamic adjustment of the target capital structure,analyzing the factors of adjustment speed from three perspectives: macro-environment,mid-environment and micro-environment,balancing the relationship between adjustment costs and profit,and how to choose the right time to adjust the current capital structure to target capital structure.The research idea of this paper is divided into three steps,put forward questions,case analysis and finally draw conclusions and inspirations of the research.Firstly,start from the basic concept of dynamic adjustment of capital structure,and take current researches as the theoretical basis.Secondly,select the HW as a typical case,study and discuss HW company dynamic adjustment of capital structure.Thirdly,reach the final conclusions and implications for the dynamic adjustment of the capital structure of other high-tech enterprises in the industry.In the process of writing this article,we mainly used the literature method,quantitative and qualitative analysis methods,case analysis methods to conduct in-depth analysis,attempting to use the dynamic adjustment of the capital structure of HW Company as an example,and drawing discussions on the theory and practice of dynamic adjustment of capital structure.Based on the theory of dynamic adjustment of capital structure,the article first introduces the concepts and characteristics of dynamic adjustment of capital structure adjustments.Then it uses the financial data of HW Company for 2012-2016 as the analysis data,calculate and analyze the observed data of HW Company and combine it with the financing behavior of HW Company to deeply analyze the influencing factors and behavioral motives of the dynamic adjustment of the capital structure.The Communications industry is a technology-intensive and capital-intensive industry,which has a large demand for capital.Therefore,the target capital structure and its adjustment methods are also different from other industries.Based on this characteristic,this paper uses correlation analysis to estimate the target capital structure,adjustment speed,and adjustment cost of HW's 2012-2016.Based on data analysis,the horizontal adjustment of HW's adjustment results is compared with that of enterprises in the same industry.The effectiveness of dynamic adjustments is summarized,and the remaining problems of dynamic adjustments are analyzed to guide the follow-up adjustments.This article through the dynamic adjustment of the capital structure of HW company,draws the following conclusions and implications: Firstly,according to the changes in the market environment,properly adjust the path of debt financing,explore diversified financing channels,establish multi-level and all-round capital structure,especially for multinational companies,can appropriately increase the proportion of overseas financing.Secondly,for the long-term development of the enterprise,it is necessary to improve risk management,strictly control the debt ratio,and establish a flexible and proactive mechanism for the dynamic adjustment of the capital structure.Thirdly,seek more equity financing channels,make use of equity incentives.Only in these ways,companies can win a place in the complex and ever-changing market,win a good position in the struggle of many competitors.In order to be in an invincible position,companies need to look to the whole world,make their own capital structure closer to international standards,and further explore the international market.