企业负债经营的问题与对策(外文)复习课程

企业负债经营的问题与对策外文资料翻译The advantages and disadvantages of debt managementI. INTRODUCTIONLiabilities can raise the money. Enterprises in the case of insufficient funds, debt management may use more power to expand enterprise scale and economic strength, short time to improve the operation efficiency of enterprises and competitiveness. Any a enterprise not only in the case of insufficient funds need indebtedness, in funds under the condition of relatively abundant indebtedness is also very necessary. Even if an enterprise internal capital accumulation, more by its own capital alone enterprise scale and he can use the amount of money is limited. Through responsible business, and control can be obtained more the amount of capital. As long as reasonable use these funds organization and coordination, expand the business scope of business and the way of thinking, improve the technology and equipment, reform process, the introduction of advanced technology, updating equipment, expand the scale of enterprise, broaden the scope of business, improve the quality of the enterprise, can strengthen enterprise economic strength and competition ability.II. The advantages of debt managementDebt management is a commodity to a certain stage of economic development. The inevitable product of market economy is the only way for the development of enterprises. Enterprises to develop, relying on internal accumulation and its own funds to meet the needs of enterprise development, not only does not allow time and the number would still be difficult to meet the demand, it will lose business opportunities and constraints of the rapid development of enterprises. Rational use of debt, to enable businesses to obtain financial leverage effect. Improper use may increase the enterprise’s finan cial risk, so that enterprises involved in financial crises.Tax debt can play a role. Because under the current system, the financial liabilities included in the cost of interest, and before the deduction of income tax, it can generate tax so that small business income tax, thus increasing the equity capital gains. The higher interest charges on, the greater the tax section, so that businesses with liabilities using its own funds for all businessescompared to the cost increase, reduction in profits. The amount of income tax be reduced, thereby reducing the amount of income tax paid to reduce the tax burden on enterprises.Liabilities of business enterprises can reduce the cost of capital. Operating requirements of the liabilities of enterprises regularly pay interest and principal payments due to creditors for a smaller investment risk and therefore required a low rate of return on investment. In addition, the role of the above-mentioned tax and therefore the cost of debt capital is usually less than the cost of equity capital.Liabilities of business can benefit from inflation. Liabilities are generally due to debt service, an increase in the inflation rate, the original liability of the real purchasing power will decline, after the enterprise by reducing the amount of debt service, in fact, is to shift the consequences of currency depreciation to the creditors.Debt management is beneficial to maintain control of companies. In the enterprise facing a new financing decisions, such as if to find stock way to raise equity capital, not only the cost of capital than debt financing, will also bring equity scattered, affect the existing shareholders for the control of the enterprise. But if to issue bonds or borrow from Banks and other financial institutions capital, to raise debt capital, the creditor has no right to participate in the company's operating decisions, while expanding enterprise capital source does not affect the control of the enterprise, is conducive to maintaining existing shareholders control enterprise production and business operation activities.The balance of financing in comparison with other modes of financing, financing a short time, to spend a small price. Borrowing in particular, after consultation of the loan amount, repayment terms, with the period shall change, but also for solution through consultations with greater flexibility.Ⅲ.The disadvantages of debt managementDebt to maintain the existing shareholders under the premise of control brought about by the rapid growth of wealth. Thus, capital markets, as well as for business managers have entrepreneurial spirit and readiness to take risks is a positive innovation as an important sign of the measure, that is, the level of debt. However, enterprises in the process of debt as a result of the business environment there are many uncertain factors, especially in pre-borrowing the idea ofoperating conditions is not conducive to business development, will result in the risk of debt. Run the risk of liability comes mainly from the financial risk and business risk issues.Financial risk is increasing due to the use of debt and financial burden, and thus the solvency of the enterprise may be lost, eventually leading to the risk of corporate insolvency. When enterprises are facing low economic development, due to a fixed amount of the interest burden, the profits will fall, bringing the interests of a substantial decline in rate of return of negative impact. Funding for the liabilities, businesses have due and timely payment of interest and a statutory duty to repay the principal. Once the financial conditions deteriorate, or the operation of short-term funds is inappropriate, it will enable the enterprises are facing the risk of insolvency. Thus, on the one hand, may cause long-term part of the short-term liabilities, and enable enterprises to increase the operating costs; On the other hand, will also affect the credibility of enterprises to make financing more difficult.Excessive debt is likely to cause the agency conflict between shareholders and creditors. The creditors' interests are not compromised a premise condition is the enterprise the risk degree is in predicting the allowed range. In the real economic life shareholders tend to invest in risky projects, because if the project is successful, the creditors can get fixed interest and principal, the rest of the profits for shareholders possess completely, and then realize the transfer of wealth from creditors to shareholder; If the high risk of investment project failed, the loss shall be borne by the common shareholders and creditors. In addition, shareholders to issue new bonds will also damage the interests of the creditors. Because shareholders in order to get new money, often can give new creditors claims priority, so that we can reduce new debt to pay interest rates, but also increase the risk of the creditors, led to the original real fall in the value of the bond.Debt ratio is too high, can lead to the company's share price. Business owners to the enterprise debt management's tolerance is limited. When the indebtedness of the investment rate is lower than its cost of capital, the enterprise must took part from the returns of originally by the owners used to repay the debt principal and interest, the owner income will therefore suffer. Owner may therefore selling stocks, due to the influence of psychological factors such as market expectations at the same time, enterprise's stock market is bound to decline. That stock marketprices, investors will lose faith in business, this is not conducive to enterprise long-term development.Anyhow, debt management benefits a lot, but at the same time, the risk of operating liabilities are concomitant, indebtedness of the earnings and risks are fused together. Therefore, the enterprise can not blindly to finance operations with debt.Author:Gabilondo, Jose, Florida International University, Miami, FloridaLatin American and Caribbean Law and Economics Association (ALACDE) Annual Papers负债经营的优点和缺点第一部分介绍负债经营是商品经济发展到一定阶段的必然产物，也是市场经济中企业发展的必由之路。