On The Capital Structure Of China's Oil Industry

The capital structure theory of the company has become the hot question of the security market since 1958. MM theorem is pointed out, under having such conditions as transaction cost, burden of taxation, information asymmetry, etc, the capital structure of the company has nothing to do with the market value of the company. From the sixties ofthe 20th century to the 1990s, numerous scholars expanded MM theorem further forward in theory. These research results indicate, in the real world, the market value of the company is closely related with the capital structure of the company.Arrangement of the capital structure is a core problem within the enterprise finance decision. It has been proved that the capital structure of different profession has the significant difference by numerous researches about capitals structure. However, Currently there is few research concerning the formation and influence factors of the capital structure of one certain profession. Contrasted with other professions, the petroleum industry of China has significant profession characteristics. In order to expel the interference of many professions admixture, this paper researches the capital structure of the petroleum industry thoroughly.This paper can be divided four parts. Part 1 includes chapter 2, which elaborates on the theories of capital structure to provide the international experience for our country petroleum industry to optimize capital structure. Part 2 includes chapter 3, which analyses the current situation and origin cause of capital structure in petroleum industry with. On the base of studying the current situation of capital structure in petroleum industry, such as the equity capital structure,the situation of debt financing and direct financing, etc, this part attempts to probe into the forming source of capital structure in petroleum industry from the angle of system and capital market. Part 3 studies how to confirm the rational parts of capital structure.The paper puts forward a method to define rational areas in chapter 4. Part 4 discusses the approaches to optimize dynamic capital structure of petroleum industry,which is the purpose of this paper. Therefore in chapter 5 this paper respectively discusses this problem, and points out the steps to optimize the capital structure of our country petroleum industry.