Research On The Capital Structure Of KH Corporation

As the reform enters into the profundal zone,the transformation and upgrading of enterprises will face great pressure and challenges,but at the same time it will bring huge development dividends to enterprises.The implementation of the government's reform policies,the volatile capital market and the upgrading of the people's consumption will all affect the operation and decision-making of enterprises.As a listed pharmaceutical company,KH corporation is in urgent need of improving its capital structure,so as to seize opportunities in such a complex environment,expand the market,stay ahead of The Times and make its own contribution to the construction of a healthy China.The author takes KH company,a pharmaceutical company,as the research object.In order to ensure the authenticity and effectiveness of the data,the financial report from 2014 to2018 released by the company is taken as the data basis.This paper consists of five parts.The first part introduces the research background and significance,classifies and summarizes relevant researches at home and abroad,and introduces the research methods,research contents and technical routes.The second part is the conceptual basis and theoretical basis.The meaning of capital structure and the content of broad capital structure are introduced emphatically.In addition,capital structure theory,MM theory,trade-off theory and principal-agent theory are the theoretical supports of this paper.The third part is the problems existing in the capital structure of KH company.KH company is introduced first,and then focuses on enterprise's capital structure problem,the author from liability relationship between the proportion of assets and the owners' equity,debt structure and ownership structure three aspects,comparing with trade company at the same point of view,it is concluded that the KH problems of corporate capital structure: asset-liability ratio is low,high proportion of short-term borrowing and the ownership concentration on the high side.The fourth part analyzes the causes of the capital structure problems of KH company.In view of the above capital structure problems,the paper focuses on the analysis from three aspects: the small scale of enterprise assets and high degree of specificity,the limited conditions of short-term borrowing and low cost,the single ownership structure and the deviation of managers' behavior.The fifth part,the countermeasures to improve the capital structure of KH company.This includes expanding the size of assets and strengthening asset operationmanagement,adjusting the proportion of long-term and short-term borrowing,introducing strategic investors and enhancing incentives for managers..The fifth part,the countermeasures to improve the capital structure of KH company.It includes expanding the scale of assets and strengthening asset operation management,adjusting the proportion of long-term and short-term loans and optimizing corporate governance.The last part of the paper is the research conclusion,which summarizes the core content of the paper.The author aims to make use of the conceptual basis and theoretical basis of capital structure,and combine the actual development of enterprises to improve the capital structure of enterprises,so as to facilitate the sustainable and healthy development of enterprises.At the same time,it can also provide some references for other companies in the same industry to some extent,so as to promote the high-quality development of the industry.