Research On The Financing Structure Optimization Of HLHG Company

Financing structure,also called capital structure,As the key content of financing decisions,capital structure has an important influence on the survival and development of enterprises.The purpose of financing structure optimization is to keep the matching of assets and liabilities of enterprises,that is,to realize the rationality of capital structure and to prevent the liquidity risk of enterprises.Judging from the changes in domestic monetary policy and the living environment of enterprises in recent years,i.e.,the total amount of social financing has increased year by year and many supportive policies has been introduced by State for real economy development.However,these supportive policies are not indiscriminate and unconditional.At the same time,relatively large chemical companies are also facing internal supply-side reforms and adjustments,increasing industrial competition,and mounting downward economic pressure.This requires enterprises to review the problems existing in the capital structure,and determine the optimal capital structure interval based on scientific theories.This process concerns the application of related financing structure optimization theories,and is also an exploration of optimal capital structure for enterprises of the same type.In this paper,the HLHG company will be taken as research target.The author of this paper determines the optimal capital structure interval by applying the optimal capital structure model and comparing with benchmark enterprises based on relevant capital structure theories and domestic and foreign research results,and then proposes some capital structure optimization suggestions.Firstly,the development history and status quo of HLHG were reviewed,and the internal and external financing environment were analyzed to provide evidence for its problematic financing structure in the next chapter.Secondly,the benchmark enterprise for HLHG’s capital structure optimization was anchored based on the life cycle theory,and the problems existing in HLHG’s financing structure were determined via vertical and horizontal comparison.Then,the static optimal capital structure of HLHG was calculated by adopting the optimal capital structure quantitative analysis model,based on which the dynamic optimal capital structure was performed.During this process,the impact of external factors on HLHG’s capital structure was obtained through qualitative analysis.Finally,an quantitative analysis on the quantitative impact of internal factors on the HLHG capital structure was conducted with entropy weight method,and HLHG’s optimal capital structure interval was determinedaccording to both the calculated static and dynamic optimal capital structure results.As per the conclusions obtained in the analysis,the author made specific suggestions for HLHG’s capital structure optimization.The research found that the problems existing in HLHG’s financing structure mainly include :excessive concentration of financing channels,high proportion of short-term credit,mismatch between financing entities and capital demand entities,lack of negotiation ability with financial institutions,etc.Profitability,operating capability,growth,equity structure,and short-term solvency ability are the five main factors affecting HLHG’s capital structure.Through quantitative analysis of the capital structure,it is concluded that HLHG ‘ s static optimal capital structure is 35.31%,and external factors can inhibit HLHG’s continued increase in liabilities.By making dynamic adjustments with reference to benchmarking enterprises based on this static data,HLHG’s optimal capital structure interval is [35.31%,48.99%]。On the basis of the above research,the optimal path design of capital structure is carried out around the five factors most important to the HLHG capital structure optimization,which provides reference for the HLHG capital structure optimization.