Research On Optimization Of The Capital Structure Of The H Automobile

With the emergence of MM theory,the problem of capital structure has been concerned by scholars and enterprise managers.In recent years,the development speed of China’s automobile industry has slowed down due to the increasing trade friction between China and the United States and the slowdown of China’s economic growth.In addition,with the continuous entry of foreign automobile enterprises into China’s market,domestic enterprises are facing fierce competition.At the same time,energy shortage,transportation,environmental protection and other aspects of the increasing pressure,large displacement,high pollution of the traditional car has been unable to meet the market demand.It is urgent to increase research and development investment and transform to new energy vehicles.However,the automobile industry generally has unreasonable capital structure,such as high asset-liability ratio and high current liabilities.The unreasonable capital structure reduces the enterprise’s ability to withstand risks and may cause the enterprise to be in financial difficulties due to cash flow disruption,and it will affect the research and development of new technology products and restrict the transformation of the automobile industry.Therefore,it is necessary to optimize the capital structure of automobile industry.H automobile company is a leading enterprise in the automobile industry of AH province and has certain influence in the automobile industry.Therefore,H automobile company was taken as the target company of this paper,and its capital structure was studied by literature research method and case study method.Firstly,by sorting out the domestic and foreign literature,the concept of capital structure is clarified,and the related theories of capital structure are sorted out.Secondly,through horizontal comparison and vertical comparison,it can be seen that the capital structure has such problems as high asset-liability ratio,unreasonable debt structure and defects in equity institutions,and the causes of these problems are deeply explored.Then,the static optimal capital structure of the company is determined,and the entropy weight coefficient method is used for dynamic optimization,the influence weight of each influencing factor is determined,and the optimal capital structure interval is determined based on the current operating status of the company.Finally,according to the causes of the company’s capital structure and the range of the optimal capital structure,some reasonable and effective improvement measures are given,such as increase internal capital accumulation,reasonably adjusting the debt structure,expanding the financing channels,and establishing the risk monitoring and early warning system.The research of this paper is helpful for the target company to optimize the capital structure and maximize the enterprise value.In addition,the research of this paper also has certain reference significance to other automobile companies’ capital structure optimization.