Strategies To Optimize The Capital Structure Of Private Listed Copmpanies

Capital structure has an important role in corporate financial management, scientific and rational capital structure will help enhance corporate value, thereby enhancing the efficiency of the market in resource allocation. Since 1958 MM theory was born, experts and scholars have a broad and deep research on capital structure issue; Western countries now form a relatively complete system of capital structure theory. At present, China’s private enterprises are in a rapid growth, capital structure theory is one of the important factors to prevent the value of private enterprise. Thus, this paper studies on the optimization of the capital structure of listed Chinese private enterprises is very necessary.Firstly, in this paper put the theoretical study of the capital structure as the beginning, and then establish a theoretical framework for this study required. On the basis of theoretical research on the capital structure, make a study on private listed company empirical data analysis to identify the characteristics and problems of its capital structure, while the study drawn inspiration finally find optimization suggestions of private listed companies. This paper is divided into six sections to study. The first chapter is an introduction text to discuss the background and significance of the theoretical basis of the research results, and also the research framework and routes. The second chapter is to establish a theoretical framework of this study, the theoretical basis for the study of the next chapter. The third chapter is the analysis of the current situation of private capital structure of listed companies, and to find out where the problem lies. The fourth chapter of mutual relations depth analysis of the impact of capital structure and corporate values provide a realistic basis for concluding recommendations. The fifth chapter is based on the above study to find out the findings, and research the ways and means to optimize the capital structure of private listed companies. The sixth chapter is the Summary and outlook.The main features of private capital structure of listed companies is the high corporate debt ratio, the proportion of current liabilities unreasonable, which is different from China’s state-owned enterprises and medium-sized enterprises; In addition, ownership structure, there are some problems, ownership concentration is high. This article is based on China’s special market environment that the private enterprises face to, and make an empirical analysis of the characteristics of private enterprise’s own capital structure, analysis the feature of capital structure for private enterprises, then make a depth explor the relationship between capital structure and corporate value. At last, thepaper will prvide the suggestions to optimize the capital structure.