Research On The Influence Of Debt To Equity Swap On Capital Structure Of Chalco

With the development of economy,it is difficult to continue the mode of relying on investment plus leverage to drive the rapid economic growth in the past.The leverage ratio of non-ferrous metal industry is too high,and the unreasonable capital structure is particularly prominent.Under the promotion of supply side reform,many enterprises respond to the competition of the industry by carrying out market-oriented debt to equity swap and comply with the market requirements,so as to improve the capital structure of enterprises and promote the healthy and stable development of enterprises.On the basis of previous studies,this paper attempts to take Chinalco,which has a high long-term asset liability ratio in China's non-ferrous metal industry,as the research object,to compare the actual capital structure before and after debt to equity swap with the optimal capital structure before and after debt to equity swap to find out the two gaps and reasons,so as to analyze the impact of debt to equity swap on the capital structure,and put forward relevant suggestions.Firstly,the relevant theories of capital structure are sorted out,and then the current financial situation and capital structure of Chalco are briefly described.Based on the analysis of the current situation of the actual capital structure before the debt to equity swap,the results show that the asset liability ratio is too high,the proportion of shareholders' equity is too different from the industry,and the debt structure is unreasonable.Using the optimal capital structure quantitative analysis equation to calculate the optimal static capital structure before and after the debt to equity swap,based on this,combining with the non quantitative factors to build the index system,using the entropy weight method to determine the dynamic optimal capital structure interval before and after the debt to equity swap [46.32%,66.20%],after debt to equity conversion [47.68%,61.90%],changes in external environment and profitability effectively narrowed the gap between the actual and optimal capital structure after debt to equity conversion,and debt to equity effectively promoted the improvement of the capital structure of Chalco.Through the weight of dynamic capital structure calculation,in order to deepen the optimized impact of debt to equity swap on capital structure,some suggestions are put forward to resist the risk of external environment change,improve profitabilityand reasonably plan exit channels.Further help Chinalco to achieve tax saving effect through financial leverage,reduce financial risks caused by high debt ratio,realize the maximization of enterprise value,and also play a certain reference for other similar companies.