StudyoftheCapita_省略_ineseEnterprises_Yue.pdfVIP

2012 International Conference on Education Reform and Management Innovation Study of the Capital Structure and Firm Value of Chinese Enterprises Yue Feng Mudanjiang Normal University, Mudanjiang, Heilongjiang, China 157000 Keywords: Chinese enterprises, Capital structure, Enterprise value Abstract. The capital structure optimization problem has long been plagued in the academia worldwide. This paper explores the Leland capital structure theory model based on the reasonable range suitable for Chinas corporate capital structure optimization. Firstly, from the MM model and the amendments to the MM model manpower, it is based on the basic model of the enterprise value to reflect the capital structure and financial risk. Capital structure and earnings - liabilities ratio of Chinas state-owned enterprises, empirical analysis, research the actual liabilities ability of state-owned enterprises in China. Finally, around the sustainable development of enterprises and based on the introduction of Leland to explore suitable national conditions, and the corresponding export under certain conditions to be a more reasonable debt ratio range. 1. Introduction Throughout the Western capital structure theory, the following view: net income (NI) theory, the theory of net operating income (NOI) and Modigliani - Miller (MM) theory. Net income (NI) theory is that changes in the capital structure lead to changes in the cost of capital; the value of the company along with movements and increases with the rise of the debt ratio, net operating income (NOI) theory that changes in the capital structure of the value of the company is not impacted. The MM theory introduces arbitrage (description of the concept