The Empirical Research On Financial Leverage Of Real Estate Listed Companies In China

Financial leverage, a tool used to improve company value by utilizing debt to makethe variation of common shareholders’ equity exceeding the variation of profit beforetax and interest, can result in extra profit or extra loss of the company. So how to utilizethe financial leverage to gain extra profit meanwhile avoid financial risk as far aspossible seems extremely important, especially for those real estate companies withintense capital and depending heavily on financial leverage.Firstly, this thesis analyzes the actuality of the Chinese and foreign academiaall-sided about the financial lever, and grasps the forward position trends. The secondpart makes it clear about the main theorem and rule of financial lever, which is thetheoretical foundation as this thesis. Thirdly, relatively appropriate research samples,financial indexes and research approaches are chose in the third and fourth part in thethesis, and studying suppose is put forward, in preparation for carrying on the empiricalwork. That is, the two parts are focal points of the thesis, which use the sample data tocarry on reasoning, calculating and analyzing that is proved, and drawing the conclusion.First of all, it has empirical research on collectivity, distribution, trade level and dominoeffects of financial lever, and analyzes our country’s application of the financial lever atpresent. Then, it verifies the inside and outside factors that influence the financial leverthrough the way of empirical work, and compares the result of study with relevanttheories and domestic and international positive research of empirical work. On thebasis of this, it explores in carrying on the financial lever optimum and regularly. Thefinal part summarizes the full thesis, puts forward some suggestions, and points out thelimitations of the existence in this thesis.The innovation of this paper is to use "mean estimation" to estimate reasonablefinancial leverage.