Research On The Optimization Strategy Of Financial Leverage Of Z Construction Compan

Since the outbreak of the international financial crisis in 2008,the problem of high leverage of China’s construction enterprises has become increasingly significant.In response to the high leverage ratio of enterprises,the Chinese government has actively responded to and successively introduced a series of deleveraging policies,but from a dynamic point of view,the risks accumulated by the financial crisis are still in the stage of digestion.Among them,the high leverage ratio of micro enterprises is the main reason for the high macro leverage ratio in China.In the national economic industry,as an important production sector in my country,the construction industry has the highest average level of financial leverage in the industry,and it is the key target of my country’s deleveraging.Therefore,in order to comply with the current situation and policy requirements in China,by studying the reasons for the high financial leverage ratio of construction enterprises,as well as what methods the company has adopted in order to reduce leverage,and what economic consequences have been achieved by deleveraging,and then put forward financial leverage optimization countermeasures accordingly to promote the sustainable development of enterprises.Based on the above considerations,this paper takes Z Construction Company,a benchmark enterprise in the construction industry,as the research object,analyzes the reasons for its high financial leverage,and explains the market-oriented debt-to-equity swap,perpetual bond issuance and asset securitization products adopted by its subsidiaries under highly leveraged operation.By evaluating the asset structure,liability structure,financial performance,enterprise value and financial risk of the case company in the process of deleveraging,and analyzing the economic effects of its deleveraging measures,it is found that although these measures have achieved certain results,there are still problems such as insufficient profitability and liquidity,and high total debt.In view of these problems,this paper proposes optimization and safeguard measures such as reducing costs,increasing efficiency,and improving profitability.Finally,summarize the experience of case companies in deleveraging and further make the following suggestions:(1)relevant laws and regulations should be improved at the national and government levels;(2)At the level of construction enterprises,emphasis should be placed on reducing leverage by strengthening endogenous financing and improving the efficiency of capital use.