The Study On The Motivation And Economic Consequences Of Zero-leverage Strategy In Corporate Financing

According to the traditional capital structure theory,in order to realize the improvement of enterprise value,an enterprise should properly undertake some interest-bearing liabilities.However,in the world’s capital market,there are quite a few companies that do not use debt financing at all and have achieved zero-leverage operations.Enterprises operating with zero leverage,because they do not use interestbearing liabilities and only use endogenous funds,not only cannot enjoy the taxsaving benefits brought about by debt financing,but also may have their own funds due to narrowed financing channels and lack of creditor supervision.management and other behaviors.The research object of this paper is Meiya Pike,an individual analysis of Meiya Pike is carried out,and a comparative study is carried out between Meiya Pike and comparable companies in the same industry.The article firstly uses the calculation of the interest-bearing debt ratio of Meiya Pike in the past five years as an introduction point,and proposes that Meiya Pike has adopted a zero-leverage operation strategy in the financing process.After that,this paper proposes that Meiya Pico adopts the strategy of zero-leverage operation in the financing process from the perspectives of profitability,cash flow,and mortgage ability.Next,considering that the narrowing of financing channels may have an impact on the financial capital management of enterprises and the R&D activities of high-tech enterprises,this paper uses financial flexibility and innovation investment to measure the financial capital management and R&D activities of Meiya Pico,trying to find out Whether the application of this zeroleverage strategy has adverse effects on Meiya Pico.After calculating the R&D expenditures,R&D personnel,the corresponding ratio,and the number of patents,it is found that Meiya Pico has accumulated a wealth of financial flexibility under the zero-leverage strategy and maintained a good innovation investment.Finally,based on the analysis of Meiya Pico case and comparable companies in the same industry,this paper puts forward three suggestions for enterprises: First,according to their actual situation,comprehensively consider the profitability,cash flow,industry characteristics,etc.of the enterprise,and reasonably adjust the enterprise capital.The second is to grasp the balance between the flexibility of cash and the flexibility of debt financing,and to carry out scientific and orderly financial flexible management;the third is to build a sound innovative investment management method,reasonably invest in innovation,and increase the output of innovation achievements.effectiveness.In addition,this paper also proposes that the government gradually reduce the financing cost of high-tech enterprises and improve the financing efficiency from the perspectives of traditional bank loans and bond market loans.