Research On The Relationship Between Leverage Ratio And Operating Performance Of Listed Companies In Construction Industry

The construction industry is an important pillar industry for China's economic development and the foundation for the growth of other industries.However,the construction industry has a higher leverage ratio than other industries,it will threaten the financing capacity and the ability to resist risks of construction companies,which will put the business operations at risk,Therefore,it is very important to study the influence of listed companies in construction industry on business performance.Reducing leverage is the new normal that construction companies must face,This article first selected 12 major industries in China according to the "Industry Guidelines for Listed Companies".By comparing the asset-liability ratio of the construction industry with that of other industries,it is concluded that the construction industry is more problematic than other industries.From the output value of the scale of the construction industry,construction industry reflect new information entered into the contract amount,number of employees and other descriptive statistical analysis,the growth rate of all aspects of the construction industry has been increasing in recent years.And for major public companies in the construction industry descriptive statistical analysis to calculate the sample's leverage and debt scale,the construction industry can be drawn listed companies in China basic asset-liability ratio above 70%,indicating that the debt of the construction industry is relatively high and serious.Whether the leverage ratio of the construction industry will become the potential risk of its performance,what is the relationship between the leverage ratio and the operating performance of the listed companies in the construction industry,which has become the research topic in this paper.In order to reflect the relationship between the leverage ratio of listed companies in China's construction industry and the business performance of the company,this paper adopts an empirical model analysis method to seek a regression model reflecting the relationship between leverage and business performance.First,based on the research results of other scholars,screened the explanatory variables and the explanatory variables,and two control variables to eliminate the influence on the financial characteristics of the company.Before preparing the empirical analysis,the paper puts forward the hypothesis that the leverage ratio and the operating performance of construction enterprises are negatively correlated.By using Eviews model test,the original data can be analyzed to obtain several sets of multiple regression equations,and the relationship between the high leverage ratio in the construction industry and the main business profit margin reflecting the performance index is negative change and inverted U type.Therefore,in order to promote the healthy development of the construction industry,corresponding strategies should be adopted to adjust the leverage ratio.This article will combine the literature and practical experience of reducing leverage at home and abroad,and put forward the countermeasures for the construction industry to deleverage,reduce the dependence on debt financing,and increase the value of construction companies.That is,to improve the enterprise's own development ability,optimize the financing structure,and vigorously promote PPP or receivables asset securitization to achieve the purpose of deleveraging.