TITLE:
Financial Structure Adjustment and Firm’s Steady Leverage under New Development Pattern —Research Based on Influence Mechanism and Enterprise Heterogeneity
AUTHORS:
He Yang, We Ma, Zhangyong Xu
KEYWORDS:
Financial Structure, Corporate Leverage Ratio, Stable Leverage, Financial Re-form
JOURNAL NAME:
Open Journal of Social Sciences,
Vol.10 No.3,
March
31,
2022
ABSTRACT: How to grasp the dynamic balance between “stable growth” and “stable leverage”, prevent and control financial risks, optimize the allocation of financial resources, and achieve active and stable deleveraging by non-financial enterprises is a major issue that needs to be resolved urgently. Based on the financial data of 4054 non-financial listed enterprises in Shanghai and Shenzhen from 2007 to 2020, this paper empirically studies the relationship between the marketization level of financial structure and the leverage ratio of non-financial enterprises in China by constructing a dynamic panel model. It is found that the improvement of the marketization level of financial structure can significantly reduce the leverage ratio of enterprises, extend their debt maturity of enterprises, and effectively improve the problem of short-term debt for long-term use. This kind of influence shows certain heterogeneity among enterprises with different property rights, scales and industries. The influence of marketization level of financial structure on leverage ratio of enterprises can be enhanced with the improvement of their innovation degree. The research conclusions of this paper enrich the discussion on increasing the proportion of direct financing and promoting the development of multi-level capital markets, and provide policy references for active and prudent deleveraging.