The Study Of Leverage’s Influence On Shipping Companies’Ship Financing Decision

2008, the generation of the financial crisis had caused serious influence on the global economy. After this, the Basel Committee actively drew lessons from the financial crisis. Taking aware of the importance of the leverage of banks and other financial institutions, they put forward to let leverage as a regulatory indicators of them, and strictly set the lower limit. At the same time, after the financial crisis and the impact of the deleveraging of developed countries, shipping companies’ship financing faced more austerity, what’s more, the country and the government were not only using the way of raising interest rates, tax cuts, improving mortgage rate, deposit and limiting leverage and so on to limit the lending abilities of the financial institutions. Other possible financing channels were also limited, and the bond market was only open to a relatively company. Due to the loss of shipping enterprise’s profits and dividends, the reputation of these companies were strokes a serious blow by the public investors. And the secondary public placement was also limited.Based on the present situation of ship financing market and the importance of leverage, from the perspective of the leverage and shipping companies’ship financing, this paper was supposed to hunting the relationship between leverage and ship financing, and aimed to provide some advice to the shipping companies’ship financing decisions from the perspective of the leverage. This paper mainly divided into three parts:firstly, had a brief introduction of leverage, ship financing, ship financing decisions, and the necessity, feasibility, attention problems of the introducing of leverage. Secondly, it used the qualitative and quantitative method to discuss the relationship between leverage and ship financing briefly. Finally, according to the research content of the previous chapters, from the perspective of leverage, it put forward some advice to ship companies on how to use the leverage to make ship financial decisions. And at last, the main research conclusion and the shortage of this paper was made, and it also had an outlook of the ship financial market.Leverage is a relatively complicated indicator, its actual application and judgment is influenced by many factors. But in the shipping market especially ship financing market, the existence of leverage provide a necessary basis for the shipping companies’ ship financing decision’s making. According to the introduction of leverage, hoping that this can lower the risk of shipping enterprise’s ship financing, and can offer some help to the long-term and steady development of shipping enterprises and the balanced development of the shipping market.