The Practice and Strategy of Capital Structure Optimization under the Background of the Financial Crisis

Wenxi Han

Authors

Wenxi Han Private Capital Markets, Evercore Partners, New York, NY, 10016, USA Author

Keywords:

optimization of capital structure, financial crisis, financing strategy

Abstract

In recent years, financial crises have occurred frequently worldwide, exerting a severe impact on the capital structure of enterprises. Affected by the financial environment, enterprises are confronted with problems such as narrowed financing channels, rising capital expenses and heavier debt repayment pressure. This paper, in combination with the changing patterns of enterprise capital structure under the financial crisis, summarizes how to optimize the enterprise capital structure of the company during the economic downturn to improve stability and enhance the ability to resist risks. It puts forward suggestions such as appropriately adjusting the ratio of liabilities to equity, broadening financing channels, improving cash flow management and constructing a flexible adjustment mechanism. It is hoped that this can provide certain assistance for improving the company's financial health and enhancing its ability to resist risks.

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