How to optimize the capital structure

Question 1: How to optimize the capital structure of listed companies in China Abstract The capital structure is directly related to the operating performance of listed companies, which not only affects the capital cost and total value of listed companies, but also affects the governance structure and managers' behavior of listed companies, thus affecting the overall economic growth and stability of a country or region. Optimizing the capital structure of listed companies directly affects their quality and investment value, enhances investors' confidence and effectively promotes the healthy development of the capital market.

Second, the evaluation criteria for optimizing the capital structure. Optimizing the capital structure of listed companies needs a universally applicable standard to measure. Modern capital structure theory holds that the optimal capital structure of an enterprise is to maximize its market value. This standard was first put forward by Modigliani and Miller, and has been widely accepted. Whether this standard is suitable for the reality of enterprises in China has been deeply studied in theory and practice. In China, there are several opinions about whether the optimal capital structure of enterprises is standardized.

1. The optimal capital structure of an enterprise is the capital structure that maximizes shareholders' wealth.

When investors invest in enterprises, they hope to get high investment returns and maximum profit dividends from enterprises, which requires the return rate of investment projects of enterprises to be higher than the cost of capital, so as to maximize the net assets of enterprises. However, with the emergence of the separation of two rights (that is, the separation of management rights and ownership of enterprises), in order to maximize the interests of enterprises, managers always hope to keep the surplus as much as possible, realize the preservation and appreciation of enterprise capital, and do not pay dividends to shareholders or pay dividends as little as possible to increase the retained earnings of enterprises. Therefore, under the goal of maximizing shareholders' wealth, even if shareholders invest in high-quality companies, they will not be able to enjoy rich investment returns, which will inevitably hit investors' confidence. In the long run, the wealth growth of the company will naturally be affected.

2. The optimal capital structure of an enterprise is the capital structure that maximizes the profit of the enterprise.

Financial profit refers to the total profit that reflects the operating results of an enterprise in one year in the income statement of an enterprise. From the perspective of users and readers, we can only see the operating conditions of the enterprise within one year. Unless we consciously analyze the profit trend, we can't pay attention to last year's profitability and future profitability. But this kind of profit trend analysis is usually carried out by professionals. Therefore, if we only pay attention to the profit statement of the year when measuring the optimal capital structure of an enterprise, it is easy to ignore the great influence of risk, capital cost and time value of money on the financial decision-making and long-term interests of the enterprise. In modern enterprises where the ownership and management of enterprise capital are completely separated, in order to keep their own vested profits, managers have short-term behaviors of competing for equipment and manpower, which makes the enterprise underdeveloped.

3. The optimal capital structure of an enterprise is the capital structure that maximizes the interests of relevant stakeholders.

Corporate stakeholders refer to investors, creditors, employees, customers, suppliers, etc. This model is to maximize the enterprise value under the condition of weighing the interests of relevant stakeholders. However, due to the conflict of interests among stakeholders in the enterprise, there are many factors that affect the interests of all parties, so it is actually impossible to maximize and quantify the interests of these stakeholders.

The signs of a perfect capital structure are: powerful functions, and all kinds of capital can play their due roles; Fast turnover, in the operation of various forms of capital can quickly change its form in turn; More value-added, more capital appreciation can be achieved through operation; Anti-risk, can resist abnormal situations and reduce losses or bring benefits. The unreasonable performance of listed companies' capital structure is the result of many environmental factors.

3. Ways to optimize the capital structure of listed companies The capital structure of listed companies in China includes not only material capital in financial concepts such as equity capital and creditor's rights capital, but also intangible capital such as human capital. Only by fully recognizing the role of human capital of operators in enterprises can we explain why the same enterprises run by different operators will produce different economic benefits. This paper puts forward ways to optimize the capital structure of listed companies from three aspects: ownership structure, creditor's rights structure and human capital.

1. Optimize the ownership structure of listed companies.

(1) Improve the stock issuance assessment system of listed companies. It is necessary to make it more difficult for listed companies to issue new shares, issue new shares and qualify for allotment, and control the tendency of listed companies to emphasize equity financing from the source. Let listed companies decide whether to carry out equity financing according to their actual operating conditions and capital market conditions, and let them bear the risks alone. Adopt index system ... >>

Question 2: How to optimize the capital structure of enterprises The principle of financial leverage refers to the process of replacing shareholders' equity with fixed-cost debt to maximize the interests of enterprises. With the joint-stock reform of China enterprises and the development of the securities market, equity financing has certain advantages, but if enterprises rely too much on equity financing, their economic development will be greatly adversely affected. Optimize the capital structure of listed companies, rationally optimize the financing behavior of companies, maintain the reasonable distribution of liabilities and shareholders' rights and interests, make the capital structure of enterprises more reasonable and maximize the value of enterprises.

First, the meaning of enterprise capital structure and capital structure decision

Debt and equity are two important aspects of enterprise capital. Because short-term funds and their raising methods are dynamic and vary greatly, and their proportion in the whole capital structure is relatively low, enterprises basically manage them as working capital effectively. Therefore, the overall capital structure of an enterprise refers to its equity capital and long-term debt. The tax deduction income of enterprises is obtained through debt financing. But the risk of enterprise capital also increases with the increase of debt, which makes shareholders have to bear the corresponding risks. It can be seen that in order to maximize the value, enterprises must fully weigh the proportion of risk and income in capital structure decision. Enterprise capital structure decision

Second, the main problems existing in the process of determining the capital structure of enterprises in China

At present, Chinese enterprises have not formed the consciousness of optimizing capital structure in the process of capital financing decision-making. High debt ratio and equity financing are still the main problems affecting the optimization of enterprise capital structure.

(A) the debt ratio of the capital structure is high, and the financial operation risk of enterprises is increased.

Because the creditors of state-owned enterprises in China are state-owned banks and the debtors are mainly state-owned capital, the use of debt financing has not played a substantial role in restraining the operation of state-owned enterprises, thus causing the situation of increasing debts of state-owned enterprises in China. China enterprises generally adopt the financing method of high debt ratio. At present, there is no perfect bankruptcy mechanism and complete delisting mechanism in China financial market. Therefore, enterprises have a vague understanding of modern financial management. They can only use the mode of debt management, but can't use financial leverage correctly and reasonably, so that enterprises can't profit from their funds. High debt level can only make enterprises lack funds more and more, which is not conducive to the sustainable development of enterprises and makes enterprises fall into a vicious circle of debt.

(B) Preference for equity financing, financial leverage interests are invalid

Although China's securities market has been relatively perfect in terms of scale, structure and efficiency, low-cost equity financing and weakened non-repayment characteristics are still the main problems affecting the development of the securities market. Because financial institutions do not effectively restrain and supervise the operation of enterprises, most enterprises still adopt the way of equity financing, and realize refinancing through allotment and issuance of new shares. Basically, they are not interested in debt financing, which makes the equity capital of enterprises increase and the asset-liability ratio of enterprises correspondingly lower. As a result, the investment efficiency of enterprises is low, the equity funds are idle, the overall performance is insufficient, the shareholders' income is reduced, and the financial leverage cannot be effectively exerted.

Third, the principle of financial leverage

The earnings before interest and tax changes of fixed debts of enterprises lead to a greater change effect of earnings per share of common stocks, which is the financial leverage effect of enterprises in debt financing. Because the profit per share of an enterprise rises and falls due to debt management, financial leverage can be divided into positive financial leverage and negative financial leverage. Leverage coefficient is the ratio between the change rate of earnings per share and the change rate of earnings before interest and tax. It is an index to measure the financial leverage effect. The smaller the coefficient, the lower the financial leverage effect and financial risk.

Fourthly, the optimization strategy of enterprise capital structure based on the principle of financial leverage.

By operating various capital ratios, debt capital and equity capital can form a reasonable ratio and effectively optimize the capital structure. Enterprises can optimize their capital structure by comprehensively weighing debt and equity.

(A) the optimization of the capital structure of enterprises with high debt ratio

Enterprises with high debt ratio and poor operating performance can effectively optimize their capital structure through debt-to-equity swap, equity financing and asset restructuring.

1, debt-to-equity swap is a unique way to optimize the capital structure, which is suitable for large state-owned enterprises that have suffered huge losses due to insolvency. It optimizes the capital structure by transforming the bad credit assets of commercial banks into the equity of financial asset management companies. The operation mode of debt-to-equity swap affects the financial management of enterprises ... >>

Question 3: How to analyze the optimization of capital structure and its influencing factors;

It refers to the process that an enterprise rationalizes its capital structure by adjusting its capital structure, and achieves its set goals.

It is of great significance for enterprises to implement the strategic management of capital structure optimization, so that enterprises can establish a modern enterprise system with clear property rights, clear rights and responsibilities and scientific management in the process of capital structure optimization, and optimize the formation of corporate governance structure on the basis of clear property rights. For the listed companies of joint-stock enterprises, it is also very important to establish a reasonable corporate governance structure, make the restraint and incentive mechanism play an effective role, and promote the maximization of enterprise value, which is also very important for the development and improvement of China's just-started capital market.

The influencing factors are:

external factor

1, the degree of development of the country.

Countries with different levels of development have different capital structures. Compared with other countries, developing countries have the following obstacles in the process of capital formation, capital accumulation and capital restructuring: First, the economic development is backward, the living income level is low, and the source of capital flow is withered. Second, developing countries have insufficient savings, imperfect financial institutions and underdeveloped financial markets, so it is difficult to effectively convert scattered and sporadic savings into investment and then form capital. In developed countries, sound, sound, complete and healthy financial organizations and capital markets play a very important intermediary role in ensuring the organization and pooling of savings, so that they can be smoothly transformed into investment.

2. Economic cycle.

Under the condition of market economy, the economy of any country is in a cyclical cycle of recovery, prosperity, recession and depression. Generally speaking, in the period of economic recession and depression, due to the overall economic downturn, many enterprises are struggling, and their financial situation is often in trouble, and may even deteriorate. Therefore, during this period, enterprises should adopt the policy of strengthening debt management. In the stage of economic prosperity and recovery, the economic form is improving, the market supply and demand are booming, most enterprises have stable sales and the profit level is rising. Therefore, enterprises should appropriately increase their liabilities and make full use of creditors' funds to engage in investment and business activities in order to seize development opportunities. At the same time, enterprises should ensure their own solvency, ensure that there is a certain amount of equity capital as the backing, reasonably determine the debt structure, disperse and balance the debt maturity, and avoid increasing the debt repayment pressure of enterprises due to the concentration of debt maturity.

3. The degree of competition in the industry where the enterprise is located.

In the macroeconomic environment, the debt level of enterprises cannot be generalized because of different industries. Under normal circumstances, if the industry in which the enterprise is located is weak in competition or in a monopoly position, such as communications, tap water, gas, electricity and other industries, sales are smooth, profits are growing steadily, and the bankruptcy risk is small or even non-existent, the debt level can be appropriately raised. On the contrary, if the enterprise is in an industry with high competition and high investment risk, such as household appliances, electronics, chemical industry, etc. Its sales volume is completely determined by the market, and the trend of profit equalization is that profits are averaged or even reduced. Therefore, the debt level of enterprises should be low in order to obtain a stable financial situation.

4. Tax mechanism.

The tax mechanism of the state on enterprise financing affects the financing behavior of enterprises to a certain extent. So that they can make choices that are beneficial to their own interests, thus adjusting the capital structure of enterprises. According to the tax laws of China. Interest on corporate debt can be included in the cost, thus offsetting corporate profits and further reducing corporate income tax. Due to the tax baffle effect, the improvement of financial leverage will increase the market value of enterprises. Therefore, enterprises with higher marginal tax rate should make more use of debt to obtain tax avoidance income, thus improving the value of enterprises.

internal factor

1, enterprise scale. Enterprise scale restricts the capital scale and capital structure of the company. Generally speaking, large enterprises tend to be diversified, vertically integrated or horizontally integrated. Diversification strategy can effectively disperse risks, stabilize cash flow, and is not easily affected by financial situation, thus making enterprises face lower bankruptcy costs and bear more liabilities to a certain extent. Vertical integration management strategy can save the transaction costs of enterprises, improve the overall operating efficiency of enterprises, not only improve the debt capacity of enterprises, but also improve the internal financing capacity of enterprises, so it is impossible to determine the relationship between the scale of enterprises implementing vertical integration strategy and the debt level. For enterprises implementing horizontal integration strategy, the expansion of enterprise scale will increase the market share of products, so it will bring higher and more stable income, so ..... >; & gt

Question 4: How to optimize the capital structure of enterprises? From the following aspects:

First, the factors affecting the optimization of capital structure

Theoretically, any enterprise has an optimal capital structure, but in practice, it is difficult for enterprises to find this optimal advantage accurately. However, all kinds of capital structure optimization theories only provide basic ideas and frameworks for enterprises. In practical work, we can't analyze according to the theoretical model mechanically. We must fully consider the actual situation and objective economic environment of enterprises and optimize the capital structure on the basis of careful analysis and study of various factors affecting the optimization of enterprise capital structure. The factors that affect the optimization of enterprise capital structure mainly include:

1. External factors:

(1) The degree of development of the country. Countries with different levels of development have different capital structures. Compared with other countries, developing countries have the following obstacles in the process of capital formation, capital accumulation and capital restructuring: First, the economic development is backward, the living income level is low, and the source of capital flow is withered. Second, developing countries have insufficient savings, imperfect financial institutions and underdeveloped financial markets, so it is difficult to effectively convert scattered and sporadic savings into investment and then form capital. In developed countries, sound, good and perfect financial organizations and capital markets play a very important intermediary role in ensuring the organization and pooling of savings, so that they can be smoothly transformed into investment.

(2) Economic cycle. Under the condition of market economy, the economy of any country is in a cyclical cycle of recovery, prosperity, recession and depression. Generally speaking, in the period of economic recession and depression, due to the overall economic downturn, many enterprises are struggling, and their financial situation is often in trouble, and may even deteriorate. Therefore, during this period, enterprises should adopt the policy of strengthening debt management. In the stage of economic prosperity and recovery, the economic form is improving, the market supply and demand are booming, most enterprises have stable sales and the profit level is rising. Therefore, enterprises should appropriately increase their liabilities and make full use of creditors' funds to engage in investment and business activities in order to seize development opportunities. At the same time, enterprises should ensure their own solvency, ensure that there is a certain amount of equity capital as the backing, reasonably determine the debt structure, disperse and balance the debt maturity, and avoid increasing the debt repayment pressure of enterprises due to the concentration of debt maturity.

(3) the degree of competition in the industry where the enterprise is located. In the macroeconomic environment, the debt level of enterprises cannot be generalized because of different industries. Under normal circumstances, if the industry in which the enterprise is located is weak in competition or in a monopoly position, such as communications, tap water, gas, electricity and other industries, sales are smooth, profits are growing steadily, and the bankruptcy risk is small or even non-existent, the debt level can be appropriately raised. On the contrary, if the enterprise is in an industry with high competition and high investment risk, such as household appliances, electronics, chemical industry, etc. Its sales volume is completely determined by the market, and the trend of profit equalization is that profits are averaged or even reduced. Therefore, the debt level of enterprises should be low in order to obtain a stable financial situation.

(4) Tax mechanism. The tax mechanism of the state on enterprise financing has influenced the financing behavior of enterprises to a certain extent, making them make choices that are beneficial to their own interests, thus adjusting the capital structure of enterprises. According to China's tax law, corporate debt interest can be included in the cost, thus reducing corporate profits and corporate income tax. Due to the tax baffle effect, the improvement of financial leverage will increase the market value of enterprises. Therefore, enterprises with higher marginal tax rate should make more use of debt to obtain tax avoidance income, thus improving the value of enterprises.

2. Internal factors

(1) Industry factors. Because different industries and different enterprises in the same industry have different strategies and policies when using financial leverage, the capital structure of different industries is also quite different.

(2) the cost of capital. Because one of the fundamental purposes of capital structure optimization decision-making is to make the comprehensive capital of enterprises the lowest, and the capital cost of different financing methods is different, so the capital structure optimization decision-making must fully consider the capital cost factor.

(3) Financial risk factors. In the process of pursuing financial leverage, enterprises must increase the financing of debt capital, which will increase the financial risk of enterprises. How to control the financial risk within the acceptable range of enterprises is an important issue that must be fully considered in the decision-making of capital structure optimization.

(4) the long-term stability of enterprise management. The long-term stability of enterprise management is an important guarantee for enterprise development. The use of enterprise financial leverage must be limited to the range that does not endanger its long-term stable operation.

(5) Operational risk factors. If the management department decides to reduce the business risk on the premise that the overall risk does not exceed a certain limit ... >>

Question 5: How to optimize the asset structure?

Many enterprises have too many non-operating assets to create profits that meet the requirements of return on capital in their operations. For example, many domestic enterprises have their own conference centers, canteens and staff dormitories. Another example is that many enterprises have a large number of inventories and accounts receivable with no realizable value on their books. Obviously, these assets do not directly generate value for enterprises, but they occupy a lot of funds and generate considerable opportunity costs. If these enterprises want to improve the efficiency of capital use and reduce the cost of capital, on the one hand, they can realize inventory and accounts receivable through flexible business strategies, on the other hand, they can consider divesting non-operating assets by financial means. The following focuses on what financial means enterprises can consider to optimize asset structure, improve capital efficiency, increase profits and penalties.

1. Split assets

When the assets of listed companies are divided into market and overall value, the divided assets can be used for high value. For example, Marriott Hotel split its assets into Marriott International and Marriott Services on 1993. Marriott service has mastered the group's real estate and debts; Marriott Group turned to sell Marriott services to investors with high taxes, because they are willing to pay a premium for the tax shield brought by these real estate and debts to help them reduce their income tax. On the other hand, Marriott International has been transformed into a pure service organization, signing long-term management agreements with investors to manage hotels. On the one hand, this spin-off directly generates cash for the enterprise through asset sales, on the other hand, it provides a stable source of income for the enterprise through long-term management agreements.

2. Debt financing and lease financing

Of course, splitting assets is not always the best way for enterprises to improve capital efficiency. In many cases, the market cannot provide reasonable asset prices; For service companies, there may not be so many tangible assets available. In this case, debt financing is an appropriate method to promote sustainable growth. The funds brought by debt financing can provide more expansion opportunities for enterprises. However, the chief financial officer of the enterprise should also consider the debt and equity structure of the enterprise, and whether the cash flow and profit can make up for the debt financing cost:

What is the liquidity of assets? Cash on hand can be regarded as the guarantee of debt, and enterprises can also adjust their cash positions by controlling the amount of debt;

The influence of interest tax relief income on cash flow;

Other debt financing schemes, such as some interest deferred loans, match cash flow outflows with inflows;

For many enterprises, especially small and medium-sized enterprises, there is often a certain gap between their ability to enter the capital market for financing and their desire for financing. They need to be more closely linked with the market to meet the return expectations of capital suppliers. New companies unfamiliar with the market often need to obtain financial credit first, and a good asset-liability structure can undoubtedly play an important role in this process.

Lease financing is another asset-liability management method that enterprises can consider: when the opportunity cost of funds is lower than the lease cost, direct purchase of assets is a better choice; On the other hand, if leasing is more economical, enterprises should sell assets and rent them back. Sanjiu Group is financing through Shenzhen Financial Leasing Company to help it develop 10000 chain pharmacies (of course, Sanjiu Group is actually transferring the financial risk of its 1 000% holding pharmacy business to its 50.29% holding leasing company, which is suspected of conflict of interest).

3. Dispose of non-core assets and keep the source of income.

Enterprises with high asset-liability ratio can have many schemes to optimize their balance sheets: financing by realizing non-core assets; Or reduce management costs through outsourcing agreements. In some cases, a combination of the two methods may be more appropriate.

The book value of enterprise assets is often far below the fair market value, so enterprises can obtain premium income by selling these assets, which will turn fixed expenses into variable expenses, thus improving the balance sheet and raising the financial ratio. In addition, enterprises can rent back assets from buyers and maintain control over production or business processes.

However, in some cases, the CFO may outsource non-core business to a third party. If the business is outsourced to a third-party professional operator, it can be managed more effectively, and the product quality can be guaranteed while reducing the cost, which is undoubtedly beneficial to the enterprise.

Asset structure refers to the proportion of various assets in the total assets of an enterprise. Mainly refers to the proportion of fixed investment and securities investment and liquidity.

Asset structure refers to the proportion of various assets in the total assets of an enterprise. Depending on ... >>

Question 6: How to establish and improve the enterprise capital structure optimization system can start from the following aspects: organizational structure optimization; Optimization of operation and management processes; Improve the basic quality of employees; Corporate culture construction; Enterprise information system construction; Corporate image building, etc.

Question 7: What should Alibaba do to optimize its capital structure? Make a drop-down list of capital structure.

Question 8: What is optimizing capital structure and debt structure, and optimizing capital structure?

Enterprises should determine an appropriate proportion structure between equity capital and debt capital, so as to keep the debt level at a reasonable level and not exceed their own affordability.

Optimize the debt structure

The focus of debt structure management is the term structure of liabilities. Because it is difficult to keep the expected cash flow in harmony with the maturity and quantity of debt, it requires enterprises to keep a safety margin when determining the maturity structure of debt on the premise of allowing cash flow to fluctuate.

Enterprises should also comprehensively evaluate the profitability and risks of long-term liabilities and short-term liabilities to determine the proportion of long-term liabilities and short-term liabilities that can maximize the profitability of enterprises even if the risks are minimal.

Question 9: What kinds of so-called capital structure can enterprises use to optimize their capital structure? In a narrow sense, it refers to the proportional relationship between long-term liabilities and equity capital. In a broad sense, it refers to the combined structure of various elements of an enterprise. Capital structure is the result of enterprise financing, which determines the ownership of enterprise property rights, and also stipulates the rights and interests of different investors and their risks.

First, maintaining a reasonable capital structure is conducive to raising the price of enterprises.

Question 10: What is the necessity of capital structure optimization? First of all, let me tell you one thing. Capital structure optimization does not belong to the category of enterprise management ... it belongs to the category of accounting and finance.

The capital structure of enterprises is formed by different financing methods, which is manifested in the composition of long-term capital of enterprises and its proportional relationship, that is, the structure of long-term liabilities, preferred shares and common equity on the right side of the balance sheet of enterprises. On the basis of determining the optimal goal of financial management, this paper analyzes the relationship between the optimal goal of financial management and capital structure, and puts forward some suggestions on how to optimize the capital structure of enterprises.

It is difficult for enterprises without optimizing capital structure to maximize profits, shareholder wealth, enterprise value and economic benefits.

Of course, the optimization of capital structure determines the source and change of enterprise funds, and naturally determines the development direction of enterprises to a certain extent. Then, the optimization of capital structure should be able to avoid capital risks for enterprises to a certain extent.

I guess so. I haven't studied it, but I have been exposed to it in my daily work.