How to Use Financial Leverage Efficiently in Listed Company

Our listed companies haven't made use of the financial leverage sufficiently and correctly in the course of their financing.In addition to the reason of our financial environment,it is mainly because of their low profitability, and their manager's risk preference etc.To make use of the financial leverage sufficiently,our listed company should improve their profitability,establish a mechanism of preventing financial risks,pay attention to the degree of the fi- nancial leverage,and handle the relationship between the financial leverage and the operational leverage.