Research On Capital Structure Optimization Of Listed Companies In Automobile Industry

The automobile industry is one of the pillar industries of China’s national economy.Under the national macro-control,under the rise of new energy vehicles,the automobile industry is undergoing major changes.In the wave of development,the company not only faces the risk of replacing the car with other modes of transportation,but also faces risks such as financial risks.The company’s capital structure not only affects the choice of the company’s financing methods,but also affects the company’s operating performance.Therefore,optimizing the capital structure,reducing the company’s operating risks,improving business performance,and being more comfortable in responding to the opportunities and risks brought about by the development wave.Based on the balance theory of capital structure and the theory of preferred financing and life cycle,this paper analyses the present situation of capital structure in automobile industry,and finds that there are some phenomena in the capital structure of automobile industry,such as higher asset-liability ratio,moderate liquidity ratio,moderate cost of creditor’s rights and higher concentration of equity.Based on the business performance index to measure the enterprise value,the company’s business performance is quantified and ranked by factor analysis method,and the relevant data of the company whose business performance score is positive are selected,and the optimum interval of three aspects of the capital structure of the automobile industry is determined accordingly:the optimum interval of the equity structure is that the asset-liability ratio is between 38.29%and 54.31%;the optimum interval of the liquidity ratio is between 1.29%and 2.38,and there is no capital structure in the automobile industry.The optimal range of cost-liability ratio is 73.04%～89.49%,the optimal range of low-cost liability ratio is 6.50%～18.75%,and the optimal range of high-cost liability ratio is 1.26%～10.96%.The optimal range of ownership structure is 37.31%～51.97%for the first largest shareholder,59.61%～74.33%for the top ten shareholders,and the ratio of the first largest shareholder to the second largest shareholder.From 2.85 to 23.32.Choosing A company as the research object,comparing the capital structure of A company with the optimal interval of the industry,we find that there are three problems in capital structure of A company:too high asset-liability ratio,a small proportion of non-cost liabilities,a large proportion of high cost liabilities and a low proportion of the top ten shareholders.The analysis finds that the reasons for these problems are that the weak profitability of A company leads to relying on external financing,less use of commercial credit and the convenience of long-term borrowing of related parties,and the majority of shareholders are natural persons with less shareholding.Then,taking the optimum interval of industry capital structure as the goal of capital structure optimization of A company,this paper puts forward three suggestions for capital structure optimization of A company:improving profitability by improving product competitiveness,increasing market share and strengthening accounts receivable management,and then enhancing internal financing ability;reducing high cost negative by making good use of commercial credit and increasing short-term borrowing appropriately.Debt ratio,and then reduce the cost of capital;through the introduction of institutional investors to concentrate equity to increase the proportion of the top ten shareholders,and then increase the degree of equity checks and balances.