A Research On The Mechanism And Measuring Model Of The Negative Financial Leverage Effect In Chinese Listed Manufacturing Companies

In 2014,the Chinese government proposed the first ten-year action plan for the strategy of building a strong country-China Manufacturing 2025.The development of the real economy with manufacturing as the main body is an important part of the sustainable and healthy development of the national economy.As we all know,with the continuous development and improvement of the capital market,there are more and more financing channels and financing methods available to the enterprises in the market,but these are the two major categories of owners,equity and liabilities.In companies that employ debt financing,the financial leverage effect of using debt capital runs through the entire process of the company's survival and development from beginning to end.The development of any thing often has two sides.Liabilities operations can effectively reduce the company's overall capital costs,resulting in a positive effect of financial leverage;but at the same time it may also cause the company to have financial risks and generate financial leverage.The problem of financial leverage negative effects arising from unreasonable use of liabilities has also become a bottleneck in the development of the manufacturing industry.Many domestic manufacturing companies have faced high pressures of high debt and low profits in recent years.Therefore,this paper starts with the definition of the negative effects of financial leverage in manufacturing industry,studies the factors that influence the negative effects of financial leverage and its structured approach,and proposes corresponding effective measures to systematically explore the negative effects of financial leverage in the manufacturing industry.The mechanism and measurement level.This has very important theoretical reference value and practical significance for the sound development of the manufacturing industry.In this paper,the connotation and financial consequences of the negative effects of financial leverage of listed companies in the manufacturing industry-the formation mechanism-the model construction-the empirical evidence analysis-effective prevention and resolving measures are the logical main lines.Using the theory of financial leverage,financial leverage,capital structure theory and system theory,this paper systematically studies the mechanism and measurement of negative effects of financial leverage of listed companies in manufacturing.First of all,it discusses the definition,characteristics and financial consequences of the financial leverage negative effects of the listed companies in the manufacturing industry.Secondly,it analyzes the debt capital cost,capital structure,financial power allocation,profitability,taxation level,and the external financial environment of the enterprise.The effect of negative effects was described and the structure of the model was described.Then,a model for measuring the negative effects of financial leverage was established based on the corresponding theoretical basis.Then the relevant theories were examined through empirical data analysis and conclusions were drawn;Corporate capital structure,enhancing the profitability of manufacturing companies,improving the allocation of manufacturing companies' financial rights,regulating the financial behavior of manufacturing companies,and purifying the financial environment of manufacturing companies provide effective precautions and solutions to prevent the financial leverage of listed companies in manufacturing.