Structural enlightenment
1. Generally speaking, the higher the income tax rate, the more obvious the tax deduction effect of interest, so the stronger the enterprise's desire to borrow. However, enterprises should also consider the impact of pre-tax deduction of depreciation expenses. If the depreciation tax deduction effect is obvious, there is no need for enterprises to have too many liabilities to avoid taking on greater financial risks.
2. Have a clear understanding of the risk crisis that debt may cause. Enterprises should establish risk monitoring mechanism and measures to deal with and resolve risks. The debt ratio of enterprises with high financial crisis risk should be less than that of enterprises with low financial crisis risk.
3. In all assets owned by an enterprise, if intangible assets account for a large proportion, its bankruptcy cost will be high. Because the value of intangible assets of enterprises is extremely unstable, it is difficult to realize and use it to pay debts. Therefore, the debt ratio in the capital structure of such enterprises should be relatively reduced to maintain strong solvency.
4. Enterprises should adopt financial easing policy and maintain appropriate financial flexibility.
(1) On the one hand, enterprises should accumulate some cash reserves when they are in good operating conditions, and they can invest immediately when there are unexpected good investment opportunities;
(2) On the other hand, it is also the most crucial point. As a debtor, enterprises often limit the maximum loan amount. Enterprises should try to maintain a certain financing reserve capacity in their daily financing, so that they can quickly borrow money to help enterprises tide over the difficulties when they have unexpected large capital needs in the future.
5. When there is a "bottleneck" in enterprise funds and external financing is needed, if new shares are issued, the new rights and interests provided by new shareholders will reduce the proportion of assets owned by old shareholders in enterprise assets. Accordingly, the control right of existing shareholders is weakened. This dilution effect will not occur when debt financing is adopted.
Extended data
vital functions
First, the financial leverage effect of debt management
No matter how much the operating profit of an enterprise is, the interest on debt is usually constant. When the income before interest and tax increases, the fixed financial expenses per 1 yuan earnings will be relatively reduced, which can bring more earnings to ordinary shareholders. On the other hand, when the earnings before interest and tax decrease, the fixed financial expenses per 1 yuan earnings will increase relatively, which will greatly reduce the earnings of ordinary shareholders.
Second, the tax-saving function of liabilities.
Enterprises pay interest on debts on schedule, and according to the current income tax law, the interest expenses of enterprises are allowed to be deducted before tax. Under the condition of obtaining the same operating profit, the enterprise with debt operation bears less income tax burden than the enterprise without debt operation and obtains relative income.
Third, the impact of debt financing on capital structure.
Debt can bring tax avoidance benefits to enterprises; When the debt ratio does not exceed the debt level when bankruptcy cost becomes important, the bankruptcy cost is not obvious. When the debt ratio reaches the debt level when the bankruptcy cost becomes important,
When the debt ratio reaches the optimal capital structure, the marginal debt avoidance income is just equal to the marginal bankruptcy cost, and the enterprise value is the largest, reaching the optimal capital structure.
Fourth, the incentive and restraint of debt financing to shareholders and managers.
Both shareholders and creditors provide financial resources for enterprises, and the separation of ownership and management rights leads to agency costs. Managers' enthusiasm for pursuing extra consumption will bring losses to enterprises and deviate from shareholders' goals, while debt financing will increase managers' relative shareholding and urge them to work hard, thus reducing agency costs.
Verb (abbreviation of verb) The risk and prevention of debt financing
Enterprises must bear financial risks if they want to obtain the financial leverage effect brought by debt management. When an enterprise carries out debt financing, the income of the investment project must be greater than the cost of capital. Secondly, debt financing also bears the risks brought by interest rate changes, debt structure and business success or failure. In order to achieve financial management objectives, make enterprises survive, develop and make profits, and maximize their value,
It is necessary to properly use debt management to bring benefits to enterprises, but also to establish risk awareness and take effective measures to prevent risks: establish an effective risk prevention mechanism; Reasonable determination of debt ratio, moderate debt management; Seriously study the relationship between supply and demand in the capital market, analyze the changing trend of interest rates, formulate debt financing plans according to their own conditions, and maintain a reasonable debt structure.
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