Research Of Financing Structure Optimization For L Company By EVA(Economic Value Added)

In the beginning of2010, there was investment boom provoked to silicon, cell and modules in china, which are the downstream products in solar energy industry, so bank loan became the main source of funds. After the expansion of production capacity in the1st half year of2011intensively, the whole industry quickly fell into a vicious price war and initiated anti-dumping and anti-subsidies in2012in the West. Banks had lowered the enterprises credit rating of this industry, and the company was facing serious fund gap.This thesis takes L company and the same industry quoted companies as the research sample, compares and analyzes net assets returns ratio and decomposed Indicators of L company and the same industry companies, and analyzes the cash cycle index of L company nearly for five years,and find out the financing problems at present and the formation reason. The thesis makes the EVA index and five effect of financing structure variables to fit linear regression equation by the software, find out the relationship between explained variables and explanatory variables, to indicate the direction for the L company’s financing structure optimization.The empirical analysis concludes that:(1) Higher of the company’s net assets returns ratio does not mean that internal financing ability is strong.(2) total assets, asset liability ratio, return on total assets and cash cycle are positive correlation with EVA, the return on total assets is a significant positive correlation; the fit ratio of long-term assets for rate shows a significant negative correlation with EVA index.(3) the effective ways of financing structure optimization based on EVA are:accelerating current assets turnover, reducing the occupation of funds effectively, improving the EVA value, choosing equity financing appropriately, raising the debt financing level appropriately, giving full play to the financial leverage effect.