A Study On The Optimization Of Capital Structure Of China Telecom Co.,Ltd.

Capital structure refers to the enterprise,the relationship between debt and equity is important research content of enterprise financial management,is one of the important indicators of reflect the financial status of the enterprise,is the enterprise stakeholders rights and obligations of concentrated reflection,affects the corporate governance structure,thus affecting the behavior of the enterprise and value.Reasonable capital structure will promote the development of enterprise health,increasing the enterprise value,returns for investors,whereas distortion will slow down the progress of the enterprise capital structure and reduce the enterprise value.So enterprises need according to the change of macro micro constantly adjusting and optimizing capital structure,by optimizing the capital structure make the enterprise of the weighted average cost of capital to the lowest,as to achieve the maximum of enterprise value,meet the needs of stakeholders,make the enterprise in the fierce competition.Telecommunications industry as a strategic industry of the national economy,to China's economic and social development plays an important role,especially in recent years the rapid development of communication technology,the Internet of things,big data and cloud computing blustery,conveniently put forward to promote the Internet in China,the big data fusion,artificial intelligence and the depth of the real economy.Telecom industry facing a rare development opportunity,at the same time also has intensified competition in the industry.In this context,it is necessary to optimize the capital structure of China Telecom co.LTD.,improve profitability and operating efficiency,actively involved in the wave of deepening reform in state.This article selects China Telecom co.,LTD as the research object,to review the classical capital structure theory and research on capital structure optimization based on both at home and abroad,first of all,from six aspects:the firm scale of assets,income,debt paying ability,operation ability,profit ability,growth ability,financial analysis,from six aspects including the overall capital structure at the same time,the rationality of the capital structure changes,financing structure,debt structure and rationality,shareholders' equity,equity structure,capital structure analysis,and compared with industry outstanding enterprises found that China Telecom:The asset-liability ratio is low,the financial leverage underutilized,unreasonable debt structure,high current liabilities and capital structure period does not match,the lack of liquidity,equity concentration,issues of state shares a dominant.Then,using the static optimal capital structure theory to calculate the optimal asset-liability ratio,calculate the weight of macro and micro factors and the direction of resultant adjustment on the basis of entropy weight method,and determine the optimal asset-liability ratio interval of China Telecom considering its operability and financial flexibility.Finally,the paper proposes specific strategies for capital structure optimization of China Telecom co.,LTD.,and adjusts the capital structure according to the optimization measures.In this paper,capital structure theory is integrated into the telecommunications industry,and China Telecom Corporation is selected as the research object.The research results provide reference for the optimization of capital structure of China's telecom operators,which has important theoretical and practical significance.