Research On Dynamic Adjustment Of Financial Leverage Of Periodic Industry Enterprises From The Perspective Of Risk Control

As an important part of the national economy,the cyclical industry has the characteristics of more significant industry fluctuations.Therefore,the sustained and stable development of the cyclical industry has important significance for the national economy.In many current listed companies,excessive use of financial leverage has led to a high proportion of capital structure and a high debt ratio,which has caused many adverse effects on the development of the company itself,such as a significant increase in the risk of hidden dangers.This study takes W company as an example to balance the risk and profitability of short-term and long-term risks by studying the dynamic adjustment and risk control of financial leverage in cyclical industries,and to eliminate the risks caused by excessive financial leverage.Firstly,through the introduction of the research background and significance and the literature review,the research proposes the cyclical impact of the cyclical industry to be studied and the research status of the dynamic balance of capital structure and risk control through financial leverage,and then the basic concept.A concise definition of definition and theoretical basis,and the introduction of dynamic trade-off theory,and financial contingency theory provide the basis for later research.The research takes the cyclical industrial chemical fiber manufacturing industry and its representative W company as an example to study the specific analysis of the impact of macroeconomic cycle changes and industry cycle changes on W company,and finally the risk control status and financial leverage of W company.Dynamic adjustment for research.The study found that the macro-economy affected the cyclical industry enterprise W company through the development level,and the chemical fiber manufacturing industry affected W company through profitability.However,W company needs to conduct risk management and control based on fluctuations in profitability.Then through risk management,leaving room for the adjustment of financial leverage,and achieving the target capital structure through the adjustment of financial leverage to achieve dynamic adjustment of financial leverage.W Company has better balanced the relationship between risk and return in the mid-term risk adjustment and the previous financial leverage dynamic adjustment,but in the latter stage,because of its large long-term debt,it failed to balance the relationship between risk and return..Finally,it is enlightened: For cyclical industry companies,financial strategies should be developed based on economic cycles and industry development prospects.Forecast the inflection point of the industry ahead of time.When the boom period is about to pass,the use of financial leverage should be cautious and avoid excessive leverage to exacerbate corporate risks.When the industry recovery comes,we must be good at using financial leverage to increase investment in enterprises and seize development opportunities,and be cautious about high-value loans.In order to avoid the late financial leverage is difficult to adjust.