Research on Capital Structure Optimization: A Case Study of Jiaozuo Wanfang Aluminum Co., Ltd. and BBBY
Year: 2025
Type: article
Abstract: The optimization of capital structure impacts a company’s long-term development capabilities. This paper uses Jiaozuo Wanfang in manufacturing and BBBY in retail as case studies to explore the causes and optimization paths of dynamic imbalances in capital structures across different industries. Based on comparative analysis of these cases, combined with theories and financial statement data, this study systematically analyzes the characteristics of capital structures, the root causes of issues, and their governance impacts for both companies. It aims to reveal the interactive effects of industry characteristics and strategic decisions on capital structure. The research findings indicate that Jiaozuo Wanfang suffers from an excessively low asset liability ratio, an abnormally high proportion of current liabilities, and dispersed equity leading to insufficient leverage returns and low governance efficiency; BBBY, on the other hand, experienced a failure in digital transformation and increased reliance on debt, causing its asset liability ratio to soar, plunging it into a liquidity crisis. The core argument suggests that companies need to dynamically balance tax shield effects and financial risks, governance structures and strategic synergy are key to optimizing capital structure. The innovation of this paper lies in cross-industry dynamic comparisons and strategic-capital structure linkage analysis, addressing the shortcomings of static theories. Recommendations for investors are that they need to pay attention to the impact of industry cycle and governance efficiency on the stability of capital structure, and avoid enterprises with high liquid liabilities.
Author: Dan Ning
Institution: Central University of Finance and Economics
Language: English
Subfield: Accounting
Domain: Social Sciences
Open Access status: hybrid
OpenAlex ID: W4409776225