Title: The Factors Affecting the Capital Structure of Gucheng Dairy
Author: Lin Taida
Advisor: ดร.จิดาภา ชลธารรัตนพงศ์ – Dr. Jidapa Chollathanrattanapong
Degree: Master of Business Administration
Major: Finance and Accounting
Faculty: บัณฑิตวิทยาลัย (Graduate School)
Academic year: 2567 (2024)
Published: The 8th STIU International Conference “TechVision Leadership: Fostering Social Sustainability” July 4-5 2024 (pp.466-475) Proceedings PDF
Abstract
With the rise in purchasing power and shifts in consumption patterns, Chinese consumers are placing greater emphasis on dairy products. However, issues such as product homogenization and recurring food safety concerns in recent years have continued to undermine the international competitiveness of China’s dairy industry. As a leading dairy brand in Shanxi Province, Gucheng Dairy faces several ongoing challenges, including suboptimal financial performance and obstacles in its expansion efforts. Capital structure largely determines an enterprise’s ability to repay debts and refinance, influences its future profitability, and serves as a key indicator of its financial health. A well-structured financing model can reduce financing costs, leverage financial regulation, and allow the enterprise to achieve a higher return on its own capital. Therefore, the research objective of this study is to examine the effect of policy, industry characteristics, product market competition intensity and company characteristics on the capital structure of Gucheng Dairy.
By constructing a quantitative analysis framework, the study conducted an in-depth examination of Gucheng Dairy’s capital structure, with empirical research data collected from 358 employees to gain a comprehensive understanding of how these factors affect the company’s capital decision-making process. The study results indicated that the policy environment, industry characteristics, product market competition intensity, and company-specific characteristics all had a positive impact on Gucheng Dairy’s capital structure. Together, these factors played a supportive role in optimizing the company’s capital structure.
From the findings, Gucheng Dairy’s capital structure could be improved by increasing policy guidance and support for the dairy industry, accelerating industry transformation and optimization to enhance profitability, and focusing on vigorously developing the corporate bond market to broaden the financing channels for enterprises.
Keywords: capital structure, policy, industry characteristics, product market competition intensity, company characteristics, Gucheng Dairy
The Factors Affecting the Capital Structure of Gucheng Dairy /
6617195039 Lin Taida 2567 (2024) The Factors Affecting the Capital Structure of Gucheng Dairy สารนิพนธ์ (Independent Study), Advisor: ดร.จิดาภา ชลธารรัตนพงศ์ – Dr. Jidapa Chollathanrattanapong, ปริญญาโท (Master’s Degree), บัณฑิตวิทยาลัย (Graduate School), Master of Business Administration, Finance and Accounting, Bangkok: Siam University