本钱结构2(国外英语资料).docVIP

资本结构2(国外英语资料) Bank loans have the lowest capital costs, followed by corporate bonds and the highest stock returns. However, as the stock market in China has a short history, the stock price of the two market is mostly overvalued. The enterprises often regard the stock financing as a free lunch, and regard the cost as only the bonus paid. In The small proportion of retained earnings 2.3 Like most developing countries, Chinas internal financing ratio is lower than that of developed countries, while Chinas enterprises are in the expansion period. There is not much accumulation in China, and the ratio of assets and liabilities is generally high. In the growth period of enterprises, the rapid expansion of enterprises requires a large number of external funds, enterprises will rely more on banks and other financial institutions, so the debt financing ratio is higher. In 2.4 the small proportion of bond financing The cost of bond financing is lower than that of stocks. In addition, the tax law stipulates that bond interest is charged before bedtime. Therefore, bond financing can also bring tax avoidance benefits to enterprises, thus increasing the after tax profits per share. However, due to the unbalanced development of the stock market and the bond market, the development of the bond market is lagging behind, and the issue of bonds by enterprises is limited by the amount of the government, so that there is little room for the enterprises to raise funds through bond financing. 3 to optimize the capital structure of Listed Companies in China the suggestions First, we see an asymmetry between debt ratio and capital profit margin. A certain proportion of debt can bring tax avoidance effect to enterprises, as well as the positive effects of restraining and encouraging managers. But not the higher the debt, the better must remain within a certain range. Several factors should be considered in determining this range. The basic premise of an enterprises choice of a project is t