Research On The Impact Of Financial Leverage Of Chinese Textile Industry Listed Companies On Operating Performance

With the continuous advancement of China's supply-side structural reform,China's traditional manufacturing enterprises have also ushered in the opportunity of industrial structure transformation and upgrading.As a traditional pillar industry in China,the textile industry is facing the suppression of foreign trade protectionism and the textile industry is constantly Under the unfavorable conditions of shifting to low-cost countries,the competition of China's textile enterprises is becoming increasingly fierce.In order to seek greater development space and more resource advantages,textile enterprises have also begun to adopt more flexible financial strategies.The use of financial leverage is The important tools and means for enterprises to use funds,but financial leverage is a double-edged sword,which can bring positive effects of financial leverage to enterprises and may also bring negative effects.Enterprises adopting a reasonable level of financial leverage when operating in debt have an important role in improving the company's financial position,incentivizing corporate governance effects,optimizing its capital structure,and improving its profitability.Therefore,according to the current situation of textile enterprises' financial leverage,it is of great practical significance to explore the relationship between financial leverage and business performance.According to the previous theories and research results,the influence mechanism of financial leverage on corporate performance was sorted out.The overall level of financial leverage,the term structure of financial leverage,and the source structure of financial leverage were used to influence the performance of textile enterprises.Explore and make assumptions.By selecting 56 listed companies in the A-share textile industry in Shanghai and Shenzhen from2014 to 2018 as the research object.In the evaluation method of the textile enterprise's operating performance,the textile enterprise's profitability,debt repayment ability,operating ability,and development ability are evaluated.Select 9 financial indicators in the four aspects,use factoranalysis to reduce the financial indicators,use the variance contribution rate as the weight to obtain the comprehensive performance value,and use it as the explanatory variable to construct a panel data model and apply multiple regression analysis methods.Test the hypotheses proposed.The empirical results show that the overall level of financial leverage of listed textile companies in China is significantly negatively related to business performance,the long-term debt ratio is positively related to business performance,the short-term debt ratio is negatively related to business performance,and the bank borrowing ratio is significantly related to business performance Negative correlation,the commercial credit ratio is positively correlated with the business performance of the enterprise.Finally,through the analysis of empirical results,this paper proposes relevant countermeasures from three perspectives on how to properly use financial leverage in textile enterprises.