Study of the Capital Structure and Firm Value of Chinese Enterprises

The capital structure optimization problem has long been plagued in the academia worldwide. This paper explores the Leland capital structure theory model based on the reasonable range suitable for China's corporate capital structure optimization. Firstly, from the MM model and the amendments to the MM model manpower, it is based on the basic model of the enterprise value to reflect the capital structure and financial risk. Capital structure and earnings - liabilities ratio of China's state-owned enterprises, empirical analysis, research the actual liabilities ability of state-owned enterprises in China. Finally, around the sustainable development of enterprises and based on the introduction of Leland to explore suitable national conditions, and the corresponding export under certain conditions to be a more reasonable debt ratio range.