The Case Research On Capital Structure Optimization Of Joyoung Co.,Ltd

In modern enterprise operation and management,capital structure is the main core issue of investment and financing research,and it is also a major component of financial decision making.It has an important influence on corporate governance as well.The proportion of the company’s shares and bonds has an important impact on company’s capital costs,financing efficiency,ability to withstand risks and corporate value.Therefore,companies must improve their own corporate value and enhance their competitiveness by optimizing the capital structure.Appliance listed companies are the most productive representatives of the home appliance industry and have sufficient capital market support.At the same time,there are also many problems in this industry,such as unreasonable capital structure and poor governance effect,which affect the performance of home appliance listed companies.So,these problems have slowed down the development of the home appliance industry.Therefore,optimizing the capital structure of listed companies in home appliances and increasing the market share of home appliance listed companies have become an urgent problem to be solved.This article is based on recent research at home and abroad.Firstly,it introduces the research background and significance,clarifies the research methods and contents and describes the concepts and theories related to the capital structure.Secondly,a listed company of home appliances-Joyoung Co.Ltd.-is selected to be the research object.The research makes a longitudinal analysis from the basic operating conditions,financial status,and capital structure of Joyoung Group and horizontal comparison of the capital structure of Joyoung shares with the same industry.Combined with related theories,it finds the problems and influence factors of Joyoung Co.Ltd.in capital structure,such as the excessively low asset-liability ratio,the high proportion of short-term liabilities,unfair ownership structure and the single financing channels.By analyzing the influence of the internal and external economic environment on Joyoung,the optimal capital structure range(45.08%,55.08%)and the proportion of long-term liabilities(10.0%,20%)of Joyoung Co.Ltd.were determined by using a combination of static optimization and dynamic optimization,and put forward corresponding countermeasures for the plan: optimizing the structure of liabilities,reducing the proportion of current liabilities,increasing the proportion of long-term liabilities,balancing the capital flow pressure of short-term liabilities,and reducing the cost of capital;further optimizing the structure of stock rights to avoid an overwhelming situation to disperse equity,reduce equity concentration and increase shareholding balance;appropriately increasing debt financing level,increasing company’s financial leverage and issuing long-term corporate bonds,convertible corporate bonds,trusts,etc.,to raise debts and increase corporate profits;expanding financing channels,actively using diversified financial derivatives,and adopting financing methods such as the conversion of bonds and equity,bonds and financial instruments.Through research the optimization of Joyoung’s.capital structure,it provides certain reference value and practical significance for other listed companies of home appliances.