Research On The Capital Structure Optimization Of Z Group Corporation

Nowadays,the unreasonable capital structure is a common phenomenon of the Chinese power inciustry enterprises.For a long time,the capital structure of power industry enterprises has been restricted by economic running model and the organization of corporations,which cannot coordinate with the socioeconomic development.Moreover,it impedes the establishment and implementation of the modern enterprise system severely.So it is inevitable to research the capital structure of power generation enterprises,then to optimize the capital structure.As one of the large power generation groups in China,Z Company is an integrated energy group corporation,which puts electric power in the core position.On the occasion of comprehensively deepen reform,implementing the rule of law and fully completed the 12th Five-Year plan,the overall target of Z Company in the 13th Five-Year period is to co-ordinate domestic and overseas markets.So that Z Company will move towards the industry-leading innovative integrated energy group and be internationalized and modernized.The development of Z Company requires huge sums of money,as a result,whether it can effectively solve the problem depends on a reasonable strategic layout of corporate capital structure.On the basis of summarizing the literature of domestic and foreign scholars,this paper analyzes the capital structure of Z Company.Starting with the financial condition,it compares Z Company with listed companies in power industry,and the conclusion is:The problems of capital structure exist in Z Company are high level of debt,unreasonable debt structure,narrow external financing channels,lack of endogenous financing channels and so on.Aiming at these problems,it analyzes internal and external factors,bases on research results in different fields,fully weighs the background of downward pressure on the country's econonic development,national policy "edeleveraging",status of power generation industry,power sector reform and the condition of Z Company,puts forward optimization suggestions:Broadening financing channels,improving asset structure to reduce debt ratio and moderately adjusting debt structure.These measures will help to rationalize asset liability structure,reduce financial risk,and enhance the sustainable development ability and enterprise investment value of Z Company.Moreover,as one of a large power generation group in China,asset structure optimization suggestion of Z Company has certain reference signification for other large power generation groups.