Modern model of analysis of the financial leverage effect of enterprises in a changing environment

Abstract

In today’s business environment, analyzing corporate financial leverage has become increasingly complex due to higher uncertainty, greater financial market volatility, and rapid changes in macro- and microeconomic conditions. Under these circumstances, classical approaches to assessing financial leverage—which assume relative stability of capital cost parameters, financing structure, and projected financial results—are increasingly insufficient for accurately reflecting the actual level of financial risk faced by enterprises.