The Research On Influence Of Alteration Of Financial Market Interest On Corporation Financial Level

With the constant development of our country and the global economy,it is necessary for our companies to apply for loan in order to dealing with the drastic competition in social economic life. Financial leverage is one of the most important tools of the financial management. The proper application of financial leverage can decrease the capital cost,improve the income and increase the value of the company. From 2005 to 2008, as the cost price rises gradually, the China's financial interest has also frequently changed. Faced with this complex situation, as the outstanding representatives of businesses, the financial leverage strategy that listed companies have taken is a very important lead for other companies. When the economic environment changes, the way to make better use of financial leverage to improve the economic efficiency of enterprises will become an important topic, and the research also has strong practical significance.Paper has reviewed the relevant domestic and foreign financial market interest rate, financial leverage research results and made some review of these representative literatures first. The theory part of financial leverage capital structure provides an overview of early capital structure theory, MM theory, trade-off theory and new capital structure; the theory part of the financial market interest rates provides an overview of the classical theory, Keynesian theory of interest rates, currency rate theory, the financial deepening theory and Marxism-rate theory. Based on the analysis of the classical theory, the paper has pointed out that the financial market interest rates may has some potential impacts on the level of financial leverage. In the calculation part, the paper has chosen iron and steel listed companies as a sample and the growth of borrowing costs, the total assets and return on equity as indicators to build the regression model. Regression results show that from 2005 to 2006, there is a positive correlation between the financial market interest rates and corporate financial leverage level and from 2006 to 2007, there doesn't show significant regression results. Based on the changes in economic environment and the results of the analysis, the paper makes some appropriate recommendations from the national macroeconomic control and financial management of enterprises aspects lastly.