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The study on capital structure optimization of state-owned enterprises

Author: WenJing From: www.yourpaper.net Posted: 2010-07-11 23:38:30 Read:

Abstract: in the analysis of the influence of related factors of the capital structure of state-owned enterprise, put forward the control basic idea on how to optimize the capital structure of the enterprises, and the capital structure governance existing analysis, think the debt-to-equity swap is modified in transition to enterprise capital structure, the reduction of state-owned shares is the inevitable choice to optimize enterprise the ownership structure.
Keywords: the capital structure optimization; structure adjustment; debt-to-equity swap; reduction of state-owned shares
With the continuous deepening of economic system reform of our country, and puts forward new requirements for the development and perfection of enterprise financial management system.The capital structure of state-owned enterprises and twisted, not only is devouring the credibility of enterprises and market competitiveness, damage to the value of the enterprise, credit risk level of the market economy, but also to a large extent shaken the foundation of the corporate governance structure, has become a major obstacle to the modern enterprise system implementation.Based on the status of the capital structure of state-owned enterprises and state-owned economy layout adjusts trend, puts forward the capital structure governance ideas and strategies based on analysis of the management method of the capital structure of China's existing.
The theory of capital structure and contents of , 1
Capital structure belongs to the category of corporate financing, financial risk analysis, to determine the funding is the premise of strategy, the use of financial leverage.The capital structure of the enterprise is the enterprise to adopt a different mode of financing form, it refers to enterprises of all sources of funds in addition to current liabilities other long-term liabilities and owners' equity ratio, is the enterprise can be long-term use of "capital", it is also known as the "permanent financing project".All kinds of financing ways and the different combinations of type determines the enterprise's capital structure and its change.
1.1 early capital structure theory and
Study on early capital structure theory began in the nineteen fifties, western researchers to the United States of America financial professor David Durand as the representative of the proposed three kinds of viewpoints of theory of net income, net operating income theory and traditional theory.
1.1.1 net income theory
According to theory of net income, because the cost of debt capital is usually low, companies use debt capital financing, can reduce the overall cost of capital, improve the company's value.Therefore, the enterprise use of debt capital is always good.The company more debt, capital cost is lower, the value of the company is higher.The debt to 100% is the best capital structure of enterprise, at this time, the lowest overall cost of capital, and the company to maximize the value of.

1.1.2 net operating income
This is not about capital structure and corporate value view.It is assumed that if the cost of debt is a constant, but the cost of equity in the change, as debt increases, the risk increases, shareholders of the required rate of return will increase, then the firm's cost of equity capital ratio will rise and counteract the benefits of financial leverage, on average, the company's comprehensive capital cost. Rates do not change, is a constant.Different from the theory of net income, net operating income theory considering the ratio of debt to increase impact on the cost of equity ratio, whether the enterprise debt ratio of the number, the synthetic fund cost rate is the same, no influence of capital structure on corporate value.
The traditional 1.1.3 (compromise) theory of
The traditional (compromise) theory point of view is: the enterprise use financial leverage liabilities in a certain range, the cost of equity capital rate rise does not completely offset the use of capital cost rate low debt capital benefits, therefore, synthetic fund cost rate will decrease with the increase of appropriate debt ratio, while the the value of the enterprise to rise, and in this range to achieve the highest possible.However, when the enterprise debt ratio of more than this range, because of the risk of increased significantly, enterprise debt capital cost rate also rose, it and the cost of equity capital ratio to rise together, make the synthetic fund cost rate, so the value of enterprises started to decline.The proportion of debt of more than this range, synthetic fund cost rate rises more quickly.The theory that the debt increased to enhance the value of the company is good, but must be moderate.If the company of excessive debt, will cause the decline in value of the company's.
Modern capital structure theory and
Before the birth of modern capital structure theory, discussion on capital structure are shallow, only some phenomenon discussed phenomenon, is based on experience judgement on, just a deduction of the owner's behavior, not systematic, scientific discussion of the essence.Until 1958 the "MM" theory, it ushered in a new era in the research of the capital structure theory.
1.2.1 MM theory
1) without the theory of capital structure under the condition of
The theory is that, without considering the corporate income tax, and business risk and capital structure is not only the same at the same time, capital structure has nothing to do with the company's market value.Or, when the company's debt ratio increased from zero to 100%, any change in total cost of capital of enterprises and the total value does not, namely the enterprise value and whether the debt, not the existence of the best capital structure problem.
2) with the theory of capital structure under the condition of
In consideration of the corporate income tax case, because the debt interest is exempt from tax expenditure, can reduce the overall cost of capital, the more debt, leverage more obvious, the value of the company is.When the debt capital reaching 100% in the capital structure, it is the best capital structure, the enterprise value maximum.
Miller model theory
In this model, the individual income tax for the correction of tax under the terms of the MM theory, think tax under the terms of the IVIM theory overestimates the liabilities of the benefits, in fact the personal income tax to offset the interest income from the investment of personal income in some degree, and the loss of the company they have to pay personal income tax liabilities of the pursuit, reduce the corporate income tax of roughly equal.Then Miller returned to the MM theory model under the condition of no tax to.
1.2.3 model theory and
According to this theory, the MM theory ignores the two factors in modern society: financial constraints and agency costs, and as long as the use of debt management, it may occur with financial constraints and agency costs.In consideration of the above two factors, using the debt enterprise value shall be determined by the following formula: no debt enterprise value liabilities tax revenue by a financial embarrassment expected cost agency cost expected present value using the debt enterprise value =.Type: liabilities that can be brought to the enterprise tax effect, make the enterprise value increase; however, with increasing debt tax returns, the present value of two kinds of cost will increase.Only the balance between debt reduction benefits and liabilities of the financial constraints of cost and agency cost, it can determine the optimal capital structure of company.That is the best capital structure should be the tax revenue equals two cost and the present value of the debt ratio.
1.3 what is the optimal capital structure of
1) the optimal capital structure refers to the weighted average cost of capital is lowest and the maximum of enterprise value, and can maximize the mobilization of the enthusiasm of the capital structure of the various stakeholders.Only when the enterprises to the lowest weighted average cost of capital when the debt level is reasonable.Therefore, there is optimum capital structure objectively, enterprises in financing decision, to constantly optimize the capital structure to make it reasonable, until it reaches the capital structure of enterprise capital cost minimum, can achieve the goal to maximize the value of enterprises.
2) structure is a dynamic combination.The reasonable capital structure as the new funding to join may lead to excessive debt or equity capital is too large.One of the tasks of financial management is through the capital structure financing management to adjust unreasonable, through the capital structure management and investment management to adjust unreasonable, the best structure to tend to return and risk for.Therefore, to strengthen the forecasting and planning in advance, implement the financial management initiative, starting from the establishment of the reasonable capital structure, risk enterprise high efficiency and appropriate as foothold, implement a new round of financing structure, investment structure and asset structure, so as to achieve the optimal capital structure.
Through the above discussion on the development of capital structure theory, we can see that the traditional track development of capital structure theory has always followed the economics research, and is accompanied by changes in other economic theory and development as well as the reality economic environment and breakthrough innovation constantly.
2 the current situation of capital structure of state-owned enterprises in China
Long-term since, the capital structure of state-owned enterprises in China by the economic operation mechanism and its form of organization control, unbalanced development of capital structure, become the bottleneck of SOE reform and difficulty relief, and then affect the corporate governance structure.Through the status quo of the capital structure of China's state-owned enterprises, sums up the capital structure mainly state-owned enterprises imbalance
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