Companies must adjust their capital structure while innovating to minimize financial risk and achieve stable cash flow, leading to higher profits. Capital structure is the combination of debt and equity used to finance business operations, with an optimal mix reducing WACC and maximizing market value per share for increased shareholder profit. Digital transformation can decrease information asymmetry and transaction costs, improving financing constraints and optimizing capital structure. Blockchain and big data can reduce information asymmetry with banks, resulting in flexible borrowing methods and maturities that optimize debt structure and reduce bankruptcy risk. Additionally, digital technology offers new financing channels such as crowdfunding and P2P models that lower transaction costs, provide rating/risk control services for investors, attract more financing capital for equity restructuring, and improve profitability.
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