Research On The Influence Of Leverage Optimization On Company Value

Since the supply side structural reform was put forward,the motivation and path of deleveraging have been widely studied.Through the study of MM theory,trade-off theory,agency theory and dynamic capital structure theory,leverage optimization is actually the process of capital structure optimization and the process of repairing balance sheet.Financing decision affects the capital cost of the enterprise,which is further reflected in the investment activities of the enterprise.Excellent financing decision and investment projects suitable for the development of the company complement each other,making the company develop healthily.Yunnan Yuntianhua Co.,Ltd.belongs to Yuntianhua group.It is a comprehensive chemical enterprise that produces phosphate fertilizer,nitrogen fertilizer and copolyformaldehyde with the non-metallic ore phosphate industry as the core.Yuntianhua is an old leading state-owned enterprise in the traditional phosphate fertilizer chemical manufacturing industry.From 2007 to 2015,Chinese enterprises started the "gilded era" of leverage,and the asset liability ratio of Yuntianhua Company soared from 68.7% to 90.1%.The enterprise also encountered unprecedented challenges and bottlenecks in its development.There are problems to be solved,such as single development model,aging product structure,insufficient innovation ability and too high financial leverage.At present,Yuntianhua is trying to respond to the country Under the background of deepening supply side structural reform,Yuntianhua has made many measures around leverage optimization.However,the company still has high financial cost,overstocked inventory,low single product profit rate,and these problems become the "roadblocks" on the way of optimizing leverage.Taking Yuntianhua as an example,this paper first analyzes the overall leverage level and value of Yuntianhua's chemical fertilizer industry,points out the shortcomings of the current development of the chemical fertilizer industry,obtainsthe optimal capital structure of the chemical fertilizer industry through regression analysis,and then explores the target capital structure of the company suitable for Yuntianhua in combination with its own influencing factors.Further,it analyzes the performance of the leverage optimization measures that Yuntianhua has implemented at present,evaluates the shortcomings of the leverage optimization of the enterprise,then measures the capital demand of Yuntianhua in the next few years in combination with the strategic development demand of the enterprise,and puts forward a targeted financing optimization scheme.Based on the optimized financing capital cost,it explores whether the company after the leverage optimization can improve its own price Value.Finally,the paper summarizes the work that needs to be done in the current development of Yuntianhua and puts forward some suggestions.This paper helps enterprises understand how to optimize leverage scientifically and how to develop healthily in the future.