Research On Leverage Effect Of Port & Shipping Listed Companies

In recent years, promoted by the increasingly prosperous world economy, international port and shipping market has achieved unprecedented progress. Meanwhile, the prosperity of international port and shipping market has also made great contribution to the rapid emergence of world economy. The port industry and shipping industry have gradually become fundamental industries which accelerate the world economic integration and international trade globalization. Therefore, the investment in port industry and shipping industry from countries all over the world is continually expanding, and the port and shipping market has received more and more concerns. With the increasing number of port enterprises and shipping enterprises to enter the capital market, the operations of Port & Shipping listed companies have drawn more and more attention.The optimal use of leverage effect is an important aspect of the listed company's financial management. How to make a better use of the "two-edge sword", leverage effect, to control risk as pursuing profit and raise economic benefit in the enterprise, will become an important subject of enterprises. It has a strong practical significance to make in-depth research of the leverage effect of Port & Shipping listed companies. It is the need of making leverage theory perfect. And there is important practical significance in optimizing cost structure and capital structure of Port & Shipping listed companies and improving the management level in particular risk management level of Port & Shipping listed companies. Besides, it has important reference value in enterprise decision of Port & Shipping listed companies, and it can provide a quantitative criteria and a scientific evidence for evaluation for governments and agencies to make an offer of a Business Diagnostic Consultation.Chapter one is introduction, which summarizes the background of selected topic and research methods of this paper and expounds the basic framework of this paper. Chapter Two is literature review, in which the domestic and the international research achievements of leverage effect are reviewed. Chapter Three is theoretical analysis of leverage effect and conceptual design of empirical analysis, which firstly outlines the related theory of lever principle, then designs the project of empirical research, and gives an adequate description of related principles of analysis. Chapter four is calculation, analysis and empirical research, which does a demonstration research maily on relevant contents of operating leverage, financial leverage and total leverage. It includes four parts as follows:firstly, the analysis on overall average of degree of leverage of Port & Shipping listed companies; secondly, the descriptive statistical description of reasonable leverage range of Port & Shipping listed companies; thirdly, the trend analysis on reasonable leverage range of the same line of business; fourthly, the comparative analysis on reasonable leverage range across industries; and lastly, the leverage equilibrium analysis. And in Chapter Five, the analyses of previous paper are summarized, the limitations existed in this thesis are pointed out, and some suggestions are put forward.