Research On The Capital Structure Optimization Of BG Steel Plates Co.,Ltd.

On the surface,the capital structure just seems to be the matter of the source of funds.However,the deeper question of it is about the allocation and enforcement of the control rights,A healthy capital structure can improve the company performance,can optimize-corporate governance structure.And the capital structure would become more reasonable,then,a virtuous circle would be formed.Therefore,the capital structure should be regarded as the primary concern of managers in the process of enterprise development.The steel industry plays an important role in economic development,and China’s steel industry is among the best in the world.BG Steel Plate Co.,Ltd.is a state-owned listed enterprise and mainly engaged in steel business,which has a relatively large influence in the local area.Its main business includes steel rolling,steel smelting,sales and so on.Thus,this paper chooses BG Steel Plate Company as the sample company.By summarizing and studying the relevant theories,this paper analyzes the capital structure of BG Steel Plate Company on the above of the analyses.It is concluded that the capital structure of BG Steel Plate Company has the problems of high asset-liability ratio,unreasonable debt structure and high ownership concentration.The reasons for these problems mainly include four aspects:too easy for a state-owned enterprise to get a loan,reduced profitability,high-level of both deposits and loans,and property rights obstacle.The optimal debt ratio is quantitatively calculated based on the static theoretical model.By analyzing the influencing factors and using the entropy method,we calculate the weight of internal and external factors,so as to determine the target range and the dynamically optimize of the capital structure in BG Steel Plate Company,then put forward some specific optimization measures and safeguard measures.It is hoped that this research can provide some reference to optimize the capital structure for BG Steel Plate Company and other state-owned steel enterprises.