Research On The Financial Leverage Effect Of LeTV's Capital Operation

The eruption of the LeTV event in 2016 has aroused great attention from all walks of life.As the world's first listed video website company,LeTV has initially structured a huge ecosystem of "platform + content + terminal+ application" since it appears on the market in 2010.However,in October 2016,LeTV's capital chain break crisis has added to the already faltering LeTV ecosystem.After Jia Yueting left,Sun Hongbin gave up some unprofitable business,and the LeEco ecosystem no longer exists.The popularity of the Internet has led to a large number of Internet companies on the market.The growth logic of Internet companies is not available in traditional enterprises.In these emerging Internet companies,LeTV is a very representative one.Research LeTV can provide some reference for the development of Internet companies.LeTV has risen rapidly in a few short years and has rapidly declined.It is very practical to study the causes of its rise and fall,find out the problems and find solutions to them.Therefore,this paper selects LeTV as the case study object,and uses financial leverage to analyze its capital operation mode.The purpose is to find the places worthy of reference in Leshinet's capital operation mode and the lessons to be learned from it.LeTV's capital operation method is unique.At present,there are few research literatures related to LeTV's capital operation,and no scholars combine capital operation with financial leverage.Therefore,this paper uses Lextra's capital operation from the perspective of financial leverage.The analysis has certain new ideas.This paper is divided into five chapters.The first part is the introduction.Starting from the market background and research significance of LeTV,it sorts out the previous research literature,sorts out the new research direction of the paper,and draws innovative points.The second part is a theoretical overview that explains the theory of capital operations and financial leverage.The third part gives an overview of LeTV and its capital operation mode,and expounds the main means and characteristics of LeTV's capital operation.The fourth part is to measure the financial leverage of LeTV's capital operation.The fifth part is based on the case study of LeTV.It is related to the fact that capital operation should be based on production and operation.Enterprises should strengthen their financial risk control ability,maintain a reasonable capital structure,appropriate debt level and high cash flow.At the same time,business managers should assume their responsibilities.