The Study on Optimizing the Capital Structure of Listed Companies in China
ABSTRACT
This year, the listed company's financial institutions have been the focus of attention. At present, our complex economic and system, listed companies showed very strong preferences for equity financing, resulting in the balance is low. Capital structure is irrational. And Shaanxi problems in listed companies, and listed companies in Shaanxi this year the problems encountered. Also pointed out that the best corporate finance capital structure and optimal order.
This detailed analysis of the financing structure of listed companies in Shaanxi Province, starting with theory, then a comparative analysis, and finally proposes a solution. Study found that the introduction of debt financing can reduce the income tax paid by enterprises, and reduce agency costs, improve business operators have to control for. Also, if too much debt financing may also lead to increased business risk, resulting in bankruptcies and financial difficulties and other issues. Therefore,the amount of debt financing can make to increase corporate value.
Key Words: Financing structure; Listed companies in Shannxi; Equity financing
