An Empirical Analysis Of Financial Leverage And Reasonable Range Of Construction Industry Listed Comqanies In China

Financial leverage is a tool for enterprises to use debt to make changes in the equity of ordinary shareholders greater than the EBIT changes,thereby increasing the value of the firm.Using of financial leverage not only bring additional benefits to the enterprise but also to the enterprise to bring a certain risk.So,how to use the financial leverage effectively and rationally so that enterprises in the acquisition of income at the same time can be a good risk to avoid the use of financial leverage in the process should pay attention to the problem.This is especially true for capital-intensive companies with high reliance on debt financing.This paper mainly studies the current research trends of financial levers by comparing the relevant literature of C hinese and foreign scholars on financial levers,and compares the similarities and differences between domestic and foreign scholars on financial levers,and finally finds out that the shortcomings of financial levers in C hina are mainly about financial Leverage lack of systematic understanding and research,especially in the construction industry listed companies in the use of financia l leverage empirical method research is lackluster.The second part of the article focuses on the basic principles of financial leverage,the measurement method of financial leverage and its degree of action,the financial leverage and the influencing factors,which are the theoretical basis of the whole article.The third and fourth parts are the main parts of the paper.This part of the main idea is to establish the appropriate sample object,from different perspectives on China's construction industry listed companies financial leverage level empirical analysis,based on the corresponding financial indicators,the use of descriptive statistical methods,through SPSS20.0 data processing And to analyze the corresponding empirical conclusions.First of all,the article selected 2013-2015 A shares of civil engineering construction listed companies(hereinafter referred to as the construction industry listed companies)as a sample,the article mainly on the three years of civil engineering construction companies listed on the overall level of financial leverage,The paper analyzes the financial leverage of listed companies in China's construction industry.Secondly,it analyzes the reasonable range of financial leverage of listed companies in China's construction industry,and establishes The Best Capital Structure of construction industry listed companies in C hina.The fifth part of the article is mainly a summary of the empirical research results,and put forward some of their own recommendations,and finally pointed out the shortcomings of the study.This paper mainly studies the financial leverage of listed companies by means of literature research,empirical analysis and other research methods.This paper uses the Wall score method to calculate the reasonable range of financial leverage of the construction industry and establishes the reasonable range of financial leverage of the listed companies in the construction industry.Finally,it hopes that the research results can make the financial decision for the enterprise.The final conclusion of the article is as follows: the financial leverage level of the listed companies in C hina's civil engineering and construction industry is increasing year by year,and the degree of financial leverage is on the rise and the annual changes are taking place with the change of financial leverage.And the level of financial leverage is positively correlated with the level of financial leverage.The profitability of the enterprise is negatively correlated with the level of corporate financial leverage.The reasonable range of financial leverage of listed companies in C hina is 50%-70% and the financial leverage is in(1,2].At this point,the company reached the optimal capital structure.