Study On Leverage Affects The Efficiency Of Listed Iron And Steel Enterprises In China

In recent years,due to the transformation of China’s economic structure,the issue of excess steel production capacity has become so prominent that the economic benefits of the entire steel industry have declined.At the same time,due to the blind expansion of the company’s early scale,the drawbacks of excessively high leverage ratios of steel companies are constantly emerging.The state has put forward the important task of "de-levering" in view of the outstanding issue of high leverage for steel companies.As the high leverage problems of the steel industry are accumulated all year round,the problems are complex and the actual effect of deleveraging is not satisfactory.Therefore,it is necessary to explore how leverage affects the efficiency of steel companies.China’s current steel industry has formed a structural system in which special steel companies and integrated steel companies coexist.These two types of steel companies have differences in resource constraints,business concepts,and technological innovations,which results in their heterogeneity being affected by leverage.In addition,debt management is a double-edged sword.The effects of different leverage levels on the efficiency of steel companies will also show heterogeneity.Therefore,this paper through the theoretical comparison analysis,enterprise efficiency measurement and empirical analysis of measurement,classification study,to obtain the efficiency of the overall listed steel company,the efficiency of different types of steel enterprises and different leverage rates of steel companies by the leverage rate of efficiency The impact of the results,and then put forward relevant policy recommendations.Specifically,by selecting a representative steel listed company from 2007 to 2016,the company’s dynamic efficiency model is constructed using the DEA model Malmquist production index.Then use DEAP2.1 software to analyze the total factor productivity,scale efficiency index,pure technical efficiency index,technological progress index and comprehensive efficiency change index of the selected listed iron and steel enterprises over the past 10 years.In order to further study the influence of leverage on the efficiency of steel companies,this paper conducts empirical tests.This article is divided into three parts.First,study the effect of leverage on the overall listed steel company’s efficiency.Secondly,this article refers to the classification of the characteristics of the types of products produced by enterprises and is divided into iron and steel enterprises that produce special steels and integrated iron and steel enterprises.Study the influence of leverage on the efficiency of different types of listed steel companies in China.Again,this paper combines the level of the company’s own debt ratio and classifies them into 60%or less,60-70%asset-liability ratios,and more than 70%asset-liability ratios representing three different levels of leverage.Analyze the influence of different levels of leverage on the efficiency of listed steel companies in China.At the same time,based on the reliability of the data,this paper uses the asset-liability ratio indicator to represent the level of leverage of steel companies.In the selection of control variables,this article separately selects from the inside and outside of the enterprise.Finally,with the help of Stata12.0 software,the above issues were analyzed by regression analysis.Through empirical analysis of samples,the results of the study on the efficiency of steel enterprises with different types of production leverage and the results of different levels of leverage on the efficiency of steel companies are specifically presented.Finally,through the theoretical analysis,efficiency measurement and empirical test,the following conclusions were obtained.1.In the 10 years,the efficiency of the overall iron and steel enterprises progressed slowly.2 The leverage ratio has different effects on the efficiency of different types of steel enterprises.The efficiency of special steel enterprises has progressed better than that of comprehensive steel enterprises.3.Different lever rates have affected the efficiency of steel companies.The influence is heterogeneity,and the main index of asset-liability ratio should be controlled below 60%.This has the best positive efficiency impact on corporate efficiency.To this end,it is recommended that steel companies strengthen their R&D capabilities,improve their own production technologies,and strive to produce special high-end steel products.We must also actively reduce the corporate leverage ratio through short-term financing,debt-to-equity swaps and other means.In addition,we must focus on the development of smart manufacturing service steel enterprises and constantly explore the frontiers of the industry in order to better adapt to the new normal of our country’s economy and enable the steel industry to develop better.