The Empirical Study For Leverage Matching On The Company's Financial Performance

With the deepening development of China's market economy and an increasingly globalized world economy, competition becoming more and more fiercely among enterprises. Sustained profitability of enterprises determine the competitiveness of enterprises, and ultimate profits of enterprises are achieved through all aspects of financial management. Therefore, most enterprises attach great importance to financial management activities. Financial leverage and operating leverage are important financial indicators, more and more enterprises make Financial leverage, operating leverage used in various financial management decision-making. However, financial leverage and operating leverage effect has two sides, both positive impact and negative impact to the enterprise. The reasonable use of financial leverage and operating leverage play an important role, increasing equity and controlling corporate risk.This article presents comprehensive analysis about the results of Chinese and foreign academics, research on financial and operating leverage. Through the comparative study in and abroad, we can clearly see the current situation of them. At the same time, I also find out inadequate part of methods which I try to reveal the results, especially the lack of empirical cases. This paper takes Shanghai and Shenzhen A-share listed company as the research object, excluding the listed companies of with data missing or have been removed delisting of the company, from 12 listed companies in different industries selected for 1105 listed companies from 2005 to 2007 in listed company's financial indicators data, the report data for the parallel panel data, their regression analysis.The empirical results show that: the low financial leverage and high operating leverage matching on the company's financial performance were significantly correlated; high financial leverage low operating leverage matching on corporate financial performance is negatively correlated with the assumption that the opposite conclusion; high financial leverage and high operating leverage and financial performance is negatively correlated.