1、附录 An Analysis of Advantages and Disadvantages of Enterprise Liability Operation With the development of market economy, enterprises in the fierce market competition for survival, or invincible, must continue to strengthen its own economic strength, many entrepreneurs, the capital of enterprises lik
2、ened yes to maintain the normal activities of life companiesblood, obviously money is important to the survival and development of enterprises, and strengthen its economic strength, sufficient funds must be guaranteed.At present, Chinas most enterprises, especially state-owned enterprises have faced
3、 funding shortages, and therefore, how to obtain funds on the business community is a crucial decision.Typically, the business has two main funding sources: first, the owner of investment funds； second, debt financing.Here, we talk about the corporate debt financing business.Liability management is
4、the responsibility of enterprises to pay particular to ensure through legal channels, paid for using other peoples money to make up their own capital deficiencies, in order to obtain payment Profit remaining after the cost of borrowing, which is the rapid accumulation of capital, a shortcut to speed
5、 up the development of enterprises, for pre-emptive strike, to seize the market for large gains.Enterprise Capital Management inseparable combination of capital, not a well-run company has no debt, the debt is the growing need for the development of an important condition.Correct understanding of de
6、bt management, debt management is of great significance to the enterprise.Contradiction exists in all matters, debt management is no exception, that companies use debtOperation, also has its advantages and disadvantages.What are the pros and cons, how can we better bring the economic benefits and cr
7、eate more, so that enterprises in the competition is ahead? 1, positive impact on firm debt 1. Debt management can make up for long-term development in the operation and the shortage of funds business in the course of business must need the money, and rely on internal accumulation of own funds, not
8、only in the time allowed, but the numbers are difficult tomeet their development needs, so companies without sufficient funds, debt funds operate more power can be used to expand business scale and economic strength, and improving operating efficiency and competitiveness.A business not only in the l
9、ack of funds needed to balance business, that is, when more funding for debt management is also very necessary.An enterprise solely for the accumulation and use their own funds, the amount of funding is always limited.Enterprises can effectively access debt and controlling the amount of funds more r
10、ationally ratio between the organization and coordination of funds, improve technical equipment, the reform process, introducing advanced technology, Gengxin equipment, enlarge the scale and broaden range and increase the quality of enterprisesenhance the economic strength and competitiveness. 2. De
11、bt management can reduce the weighted average cost of capital corporate debt financing costs lower than the cost of equity financing, debt interest payments as a pre-tax payments, debt management from the tax effect to benefit businesses can pay less income tax.That is, when the total amount is fixe
12、d, a certain proportion of debt financing can reduce the weighted average cost of capital enterprises. 3. Liabilities of business enterprises will leverage effectLiabilities operator interest paid to creditors is a the level of corporate earnings has nothing to do with the fixed expenses, the compan
13、ys total return on assets subject to change, then business owners will bring substantial fluctuations in earnings, this effect isfinancial management has been called financial leverage effect.Debt leverage on earnings per share by calculating the degree of financial leverage to the table.Said that f
14、inancial leverage (DFL) is the percentage change in earnings per share and percentage change in profit before interest and tax rate.Leverage can be expressed as: DFL = (EPS / EPS) / (EBIT / EBIT) which, DFL-financial leverage, EPS-change in earnings per share amount, EPS-earnings per share, EBIT-rat
15、e pre-tax profit of variation,EBIT-interest profit before tax.This shows that the liabilities of business as long as the investment rate of return greater than the interest rate situation, enterprises can be profitable, debt management companies will be able to bring significant financial leverage e
16、ffect.When the enterprise profit rate than the debt cost of capital funds, the company earnings will increase to a greater extent.At the same time, businesses can use their own funds debt savings to create new profits.Thus, to some extent in raising debt financing for corporate yield plays an import
17、ant role. 4. Debt management help companies to maintain control over theIn business decisions facing the new funding, if the way of the issuance of stocks to raise equity capital, equity, will bring scattered impact to existing shareholders for corporate control.The increase in corporate debt financ
18、ing sources of funding without compromising control over the enterprise, is conducive to maintaining the existing shareholders for control of the business.Second, debt management adverse impact on the existence of the business 1. Leverage effect of the negative effectsAs companies face economic down
19、turn or other reasons caused operating difficulties, due to the burden of a fixed amount of interest in the capital margins, investors will return to faster decline.Liabilities to enterprises to increase the pressure on corporate debt created the risk of insolvency, the results may lead to tension i
20、n enterprise funds, forced cheap sale or mortgage of assets. 2. Excessive debt may lead to shareholder and creditor agency conflicts between the interests of creditors will not be harmed in an enterprises Fengxian premise degree must be in projections within the allowable range. In real economic act
21、ivity, shareholders tend to invest in high-risk projects, because if the project successful, the creditor can only receive a fixed interest and principal, the remaining high incomeInterests are owned by shareholders, so they realized the wealth transfer to shareholders by creditors. If high-risk pro
22、ject fails, the loss shared by the shareholders and creditors, some creditors, shareholders of the loss is far greater than the losses, this is the so-called creditors lose money gambling.” Creditors to protect their own interests, the risk limits the extent to some, often in the loan agreement will
23、 require write-through guarantees enterprises to increase provisions to limit high-risk investment opportunities.Although debt management is to resolve agency conflicts between managers and shareholders, one of powerful tools, but it also deepened the agency between shareholders and creditors of the
24、 conflict. Thus generate agency costs, thereby reducing the enterprise value. 3,moderate debt management companies can better bring the economic benefits and create moreCorporate debt management is conducive to business development leverage, but there are also risks.Strengthen debt management, debt
25、has become a reasonable and effective to the core issue of corporate liability business.Appropriate debt management, make enterprises pay more attention to rational use of funds.If the company can appropriately balance business and financial risks of its effective control, will bring more economic benefits business.Atpresent,Many companies tend to increase the debt investment, expand production scale and improve efficiency as the development of an important way.In a sense, business debt management is to accelerate the
