The capital structure is the key to

The capital structure is the key to creating value for an enterprise. Because of the rapid development of the market economy, whether the capital structure is optimized has become a major factor in whether a company's business activities are good or bad. The governance of the capital structure of state-owned enterprises in my country is a process of continuous development. With the deepening of reform, the current capital structure of state-owned enterprises is no longer suitable for market development. The governance of capital structure has become the focus of the reform of state-owned enterprises. At present, there are mainly state-owned enterprises in my country. The problems include high debt ratio, irrational equity structure, inflexible capital structure, too single financing structure, and narrow financing channels for enterprises. How to optimize the capital structure of state-owned enterprises based on the analysis of the reasons for the irrational capital structure of state-owned enterprises in my country has become the main task of the reform of state-owned enterprises. This article first analyzes the status quo of the capital structure of state-owned enterprises and the reasons for the status quo, and then further proposes ideas and strategies for optimizing the capital structure of state-owned enterprises.