英语论文.doc

ABSTRACTS
Capital structure is an issue of substantial value to study, both theoretically and practically. It is important to study the impact of optimizing capital structure on the value of pany. Capital Structure is used to describe various capital resources and their ratios, Theoretically, the operation and management of panies is appropriate for our study of capital structure, and panies are based on the capital market, so panies are chosen to study in this paper.
Proper capital structure is of great sense in our country: specifically, improving the capital structure is helpful to increase the value panies, to increase the efficiency of financing and operation; generally, it is helpful to reform the financing institutions, to set up and enhance the financing systems pany debt market, to convenience investment and financing activities of the society, allocate financing resources economically, and as a result to speed the long term economy increase.
It is stated in the modem capital structure theory: in an efficient market, changes of capital structure will impact on the value pany; and capital structures of panies in developed countries, which are based on a somewhat efficient market, has proved this theory. So it is inferred that capital structure is tightly related to the value pany.
This paper is devoted to analyzing demonstratively, if the capital structure of pany does impact on its value, and 'verify foreign classic theories, and check the appropriateness in China of the theory: "The debt-equity ratio which has impact pany's performance is ranged between '-~' ,which is backed by the majority of scholars. Debt-equity ratio is chosen to reflect the capital structure, and return of equity (ROE) is chosen to reflect the value of the panies. With years' data of the panies, the relationship of their capital structures and their values is analyzed both demonstratively and theoretically.
By the demonstrative analysis and study of the current situations