Research On Relationships Of Capital Structure And Enterprise Value For Chinese Listed Enterprise

As a kind of fundamental raw materials, nonferrous metal plays a significant role in ensuring the development of national economy and the promotion of a harmonious society. Also with the vigorous development of Chinese capital market, nonferrous metal has attracted the attention of more and more investors. However, influenced by domestic and foreign economy, the price of nonferrous metal has been vibrated heavily in recent years which turns into a periodic adjustment. With the potential risks of price decline, it has been a pressing issue to be solved that to integrate resources of nonferrous metal industry effectively, strengthen the international competition power and enhance the overall industry value. Capital structure has always been the hot issue in the study of financial management. And a proper capital structure is the key to enhance the enterprise value as well as the improvement of enterprise management, which can help to elevate the enterprise capacity both in avoiding financial risks and making profits.This paper analyzes the situation of financial structure for nonferrous metal industry with taking nonferrous metal industry as analyzing objective based on the collection of foreign and domestic documents as well as theory studies. In the empirical study of this paper, it takes relative index of capital structure as independent variables and that of enterprise value as dependent variables with a data pool of 50 nonferrous metal enterprises which are listed in Shanghai and Shenzhen stock market from 2009 to 2013. This paper studies on the relationships between enterprise capital structure and enterprise value with adopting analyzing methods of descriptive statistics analysis, correlation analysis and multiple regression analysis. According to the analysis result, following conclusions are reached: firstly, the asset-liability ratio of listed nonferrous metal enterprises is in negative correlation to enterprise value; Secondly, current debt ration is in negative correlation to enterprise value; Thirdly, the concentration of stock ownership is is in positive correlation to enterprise value; Fourthly, the scale of enterprises is in negative correlation to enterprise value with a small correlation coefficient; Fifthly, the inventory turnover ratio shows no obvious relationships with asset-liability ratio and net assets debts ratio.Based on the situation of enterprises and relative results of empirical analysis, this paper puts forwards to optimize the capital structure of nonferrous metal industry from enterprise aspects and government macroeconomic control. From the aspect of listed enterprise, it can optimize its capital structure by improving its asset-liability ratio, non-current liability ratio and stock ownership structure; From the aspect of government macroeconomic control, Chinese government can offer a better investment environment by improving the relative law of bond market. Through these suggestions, this paper aims to promote the adjustment of enterprise capital strcture and realize the purpose of elevating the value of listed enterprises.