The Problems And Optimization Of Capital Structure Of Multinational Corporation In Hebei Province

With the acceleration of global economic integration, the number of China’s Multinational corporation is increasing, which means that our country is actively participating in the globalization of the world economy. AS the important province of our country, Hebei is grasping this strategic opportunity, going abroad to carry out the international activities. Hebei Provincial Department of Commerce points out that at the end of 2014, the number of the enterprises of foreign direct investment have reached 511, our country has invested $6359000000. Although there is many Multi-national corporation in Hebei Province, its value is low, which seriously affects the comprehensive competitiveness in the international economic market. To improve the overall competitiveness, we need to improve its value. The researches show that the factors affecting the corporate value are many, from financial management perspective, there is close connection between capital structure and corporate value, in order to improve the value of Multinational corporation in Hebei Province, to explore the relationship between capital structure and the value of company is necessary. This paper carries out the research on capital structure, using quantitative analysis、qualitative analysis and empirical analysis, to analyse the intrinsic link between the capital structure and corporate value, pointing out that the uncoordinated aspects of the capital structure and corporate value, putting forward corresponding measures based on the analysis of the causes.This paper is mainly along "Introduction�' the theory foundation of capital structure �'The research on capital structure of Multinational corporation �'Empirical Analysis to capital structure and corporate value of Multinational corporation in Hebei province �'The analysis on the problems of capital structure of Multinational corporation in Hebei province �'The analysis on the causes of the problems of capital structure of Multinational corporation in Hebei province �'The optimization of the capital structure of the Multinational corporation in Hebei province" to complete the research on capital structure of Multinational corporation in Hebei province.The first chapter is the introduction. This part mainly includes research background and significance, research status, main research methods and content, innovation aspects.The second chapter is the theoretical basis of capital structure. It mainly includes traditional capital structure theory, modern capital structure theory and new capital structuretheory. The plentiful theory provides theoretical basis and guidance for the corresponding study.The third chapter is the analysis on the present situation of capital structure. The part uses asset liability ratio, current liability ratio, long-term debt ratio, bank loans, bonds payable ratio, the ratio of tradable shares and non-tradable shares, the proportion of state-owned shares, combined with the qualitative analysis and quantitative analysis, to study the current situation of capital structure of Multinational corporation in Hebei province.The fourth chapter is the empirical analysis on the relationship between capital structure and corporate value. This part uses spss software to analyse 11 financial indicators representing the corporate value, finally obtaining the comprehensive index which represents the corporate value. This part selects asset liability ratio and current debt ratio as the representative indicators of capital structure. The final model shows that the existence of inverted U type between debt ratio and corporation value of Multi-national corporation in Hebei province.The fifth chapter is the analysis of the existing problems of capital structure of Multinational corporation in Hebei province. The fourth chapter has drawed the existence of inverted U type between assets liabilities ratio and corporate value, combined with the research on the status quo of the company, to analyse the existing problems of capital structure of Multi-national corporation in Hebei province, including the high rate of asset-liability ratio, the high rate of current liabilities, the low proportion of bonds and so on.The sixth chapter is the analysis on the causes of existing problems of Multinational corporation in Hebei province. Genesis mainly rely on bank borrowings seriously, imperfect development of bond market, the lack of financing in international securities market and so on.The seventh chapter is the countermeasures of optimizing capital structure. The suggestions mainly include expanding internal financing, strengthenning the restriction mechanism between the bank and enterprise, the perfection of bond market, strengthenning the use of international securities financing channels.