Analysis On The Application Effect Of Financial Leverage In Listed Companies

With the increasing number of listed companies and the growing size of the company,many companies are facing severe market competition.In order to seek development in the competition,capital is essential which makes the debt financing to become the only way for the development and growth of listed companies.For the study of the financial leverage caused by debt financing,foreign scholars started earlier and have formed relatively complete theoretical results and used to guide practice.China's scholars in this area is still in the initial stage,the theoretical aspects of the study is relatively simple and the content about empirical research is also less.Therefore,this paper takes China's agricultural listed companies as example,analyze the effect of financial leverage on the application in listed companies.The first part of this paper reviews the domestic and international capital structure and financial leverage of the important research results,thus find the existing problems and shortcomings in China's financial leverage.The second part introduces the theory of capital structure and financial leverage,which lays a theoretical foundation for the follow-up study of the article.The third part defines the scope of China's agricultural listed companies,and then analyzes the general situation and capital structure characteristics of the companies.The fourth part is the core of this article.In this part,the selection method of the sample and the selection principle of the index are introduced.With the purpose of grasp the current situation and existing problems of the financial leverage of China's agricultural listed companies,the data collected by descriptive analysis and linear regression analysis are analyzed and calculated.At last,put forward countermeasures to solve the existing problems.The fifth part is the conclusion of the full thesis,according to the results of analysis from the overall point of view and make recommendations in the end.