1.4 Conclusion

It can be seen from the above analysis that at the micro level, moderate increase of debt ratio can help improve the enterprises'profit level; at the macro level, the improved profit level and the enterprise prosperity can lead to the improvement of the national macro economy, which explains why governments and central banks of so many countries compete to launch the QE policy. However, high leverage excessive debt financing may result in enterprise operating risks and even bankruptcy, possibly triggering crisis in local financial field or in a country, which is one of the reasons why governments and the central banks of some countries quit the QE policy.

Therefore, firstly, the financial institutions should further bring financing convenience and reduce the financing cost of those small and medium-sized enterprises with a relatively lower debt ratio, so as to help them improve their financing capability. Secondly, considering their own specific situations, enterprises can moderately raise their asset-liability ratio to increase their profitability levels. Thirdly, it is necessary to control the financial risks from the enterprise management level, so as to ensure that the enterprise's debt can run in a reasonable scope.