The Research On Risk Control Of Financial Leverage In WK Company

The real estate industry plays an important role in the economic development of our country and is very important to the high-quality development of our country’s economy.The sustainable development of real estate enterprises can not be separated from the support of capital.Long-term accumulation of leverage-driven development model,the scale of debt of real estate enterprises continues to expand,financial leverage remains high,"high leverage,high debt,high risk" has become the basic financial characteristics of China’s real estate industry.With China’s introduction of a series of real estate industry control policies,control prices,set the tone of "housing is not speculation",high inventory problem has become a real estate industry in the development process of another problem.Financial Leverage has dual nature,effective use of financial leverage,so that it can stimulate the positive effect to increase shareholders’ rights and improve the value of enterprises.But too high financial leverage,will have a higher risk of financial leverage.If the risk of financial leverage control is not timely and in place,once the capital chain is broken,the enterprise may face the risk of bankruptcy liquidation.Therefore,it is of great theoretical value and practical significance to probe into the financial leverage risk control of real estate enterprises.The role of financial leverage has dual nature,the rational use of financial leverage,financial leverage is to play a positive effect can increase the interests of shareholders,improve the value of enterprises.But if the financial leverage is too high,the negative effect of the financial leverage will cover the positive effect of the financial leverage.Although to a certain extent it solves the capital demand of the enterprise,it will create a higher risk of financial leverage,and it will even affect the further development of the enterprise,if the risk of financial leverage control is not timely and in place,once the capital chain is broken,the enterprise may face the risk of bankruptcy liquidation.Therefore,the research on financial leverage risk control of real estate enterprises is of great significance.The thesis takes WK Company as the research object,Mainly using case analysis,literature research,inductive deduction and other research methods for case analysis,using the theories of financial leverage,financial risk control,CAS and capital structure,this thesis makes a systematic and in-depth study on the financial leverage and financial leverage risk of WK company.Firstly,this thesis analyzes the current financial leverage situation and the current financial leverage risk control situation of WK Company.Secondly,based on the industry development background,it reveals four problems:unreasonable scale and structure of liabilities,Inefficient Use of leveraged funds,high level of leverage risk and low control efficiency of financial leverage risk,this thesis analyzes the causes of the problems of financial leverage risk control,such as the inaccurate identification of the sources of leverage risk,the unreasonable investment of leveraged funds,the non-systematic monitoring and control of the process of leverage risk,and the ineffective control of financial leverage risk,this thesis puts forward four effective measures of clarifying the control target of financial leverage risk,improving the use efficiency of financial leverage fund,strengthening the process control of financial leverage risk,and improving the control efficiency of financial leverage risk.