| dc.description.abstract | Capital is an essential factor which is affected on business activities. High capital leverage with more debt will give company some advantages such as tax benefits, reducing cost of capital. But the company with very high debt ratio will have more responsibility to pay debt. If they cannot control their capital leverage, it will lead the company bankrupt. Therefore, an optimal capital structure is very useful for company, when inflation, interest are now fluctuation more and more.
If capital rationing is a hard constraint faced by management of firms, then it is correct to assume that fund providers such as shareholders at the time of equity offers and the debt-providers at the time of debt issues are likely to be influenced by how they estimate a firm’s optimal capital structure relative average industry capital structure at the time management discloses financing decisions to the market. Therefore, this thesis will
try to review and constrain optimal capital structure for Khang An Joint Stock Company for all best result.
Substantial parts of the literature concerning capital structure have dealt with issues regarding the leverage ratios. These leverage ratios have been analyzed in all kinds
of ways, where most studies have explained observed patterns. My research will also deal with leverage ratios but in an entirely new way. My problem concerns the practical matter of deciding an appropriate capital structure and the possibility of improvements, which are formulated below.
• How do the case companies decide their capital structure?
• Are their current capital structures optimal or is there room for improvements? | en_US |
