A Study On The Choice Of Capital Structure Of Resource - Based Enterprises Under Industrial Transformation

The primary task of the 13th Five-Year Plan focuses on the following fields:properly deal with downward pressure on the resource industries, promote a resources production revolution, promote a consumption revolution, promote a technical and systematic revolution, as well as the promotion of transformation and upgrading of the resource enterprise. Due to the conventional challenges resources enterprises struggled against primary revolving around homogeneity structure, shortage of funds, and incapability regarding financing-in recent years, resource enterprise have transformed dramatically most evidently in diversification strategy and increasing financial flexibility. With the mentioned changes, the industry has also experience an ever more competitive market environment. For a resource enterprise to thrive in the current competitive environment, the choice of capital structure is extremely important. Some critical questions a firm should keep in mind may include:what kind of impact the chosen capital structure would have? The sort of capital structure that best suit the enterprises? The answers to these questions will have significant effect on a firm’s financing decision during the transformation process.This paper will first analyze how characteristics of transformation process affect a enterprise’s capital structure in theory. Furthermore. The paper will verify the theoretical practices through examining the Yongtai Energy. Base on the Yongtai Energy research sample, this paper will select asset liability ratio, analysis capital structure changes of Yongtai Energy, and peer comparison from the view of financial, analysis the problem of capital structure. Then on the basis of further analysis, analysis how the characteristics of transformation process of company impact on the capital structure choice, and finally reveals the the capital structure choice behavior mechanism. This essay has certain guiding significance to resource enterprise which is facing transformation. And help them to make a correct financing decision in order to successfully achieve the transformation and development.