Analysis on Capital Structure Theory and Enterprise Capital Structure Optimization

Enterprise capital structure means the various resources, combination and relationships of enterprise raising capital as well as means the short or long debts, shareholders' rights and interest, and the proportional relationships among constituting items. Capitals raised by enterprise from different ways constitute the capital sum. Because of changing enterprise operation, the capital structure is also various and it cannot be in a fixed proportion. Therefore, we need to optimize the capital structure of state-owned enterprises so as to reach the rational resources allocation and make the national economy develop soundly and rapidly. How to optimize it? This is a big problem that we have to face. Debt-to-equity swap at the moment is only the transition for correcting capital structure of state-owned enterprises. Decreasing stocks owned by state is the inevitable choice for optimizing enterprise stock right. Capital structure is an important subject in enterprise financial management and the issue of it is theoretical and practical. Theoretically, many regulated theories explore the normal relationship between capital structure and maximization of enterprise value; practically, every enterprise has to consider and decide how to match with capital structure. Currently small and medium-sized enterprises are going to be a significant part in our economic life; many enterprises are under the transition stage from growing period to maturity period; the choice and optimization for capital structure become more and more vital.