The Research of the Relation Between Capital Structure Decision and Core Competitiveness

Abstract

The capital structure of a company reflects the proportional relation of a company’s debts and equity, which decides the ability of debt paying, refinance refunding and the profit in the future to a great extent. It is an important index of company’s financial condition. The decision-making power of a company is its core competitiveness, although competitiveness is secluded, we can express this abstract ability with concrete content and index when it comes to practice. Common core factors or ability indexes include innovative technology, employees, excellent company culture and brand impact. The paper studies and analyses the connection impact between the capital structure and the decision-making power referring to domestic and foreign data, it also combines the situation of the companies in our country.