Research On The Debt Financing Risks Of Mining Enterprises Under The Influence Of Monetary Policy

With the gradual deepening of domestic economic system reform and the improvement of market economic system,the economic activities of enterprises have increasingly penetrated into the capital market.On the other hand,the economic policy formulated by the government will also have an impact on the daily operation of enterprises.Macroeconomic policy is the key point that companies need to focus on when formulating development plans.Although mining industry is the basic industry of the national economy,it faces severe financing risks under the influence of the macroeconomic environment.On the one hand,compared with other industries,mining industry has the characteristics of labor and capital intensive and obvious high-leverage operation,which leads to the traditional financial risk of "heavy assets,thin profits" of mining enterprises as a whole.On the other hand,compared with traditional mining enterprises,the debt financing of mining enterprises under the background of contingency of internal and external environment is facing new risks.There are many predicaments,such as limited production scale,declining operating profits,deteriorating financial indicators,which lead to the decline of cash flow quality of mining enterprises and lead to greater payment risk.How to alleviate the pressure of fund raising and dilute the risk of debt payment has become the primary problem that mining enterprises need to face in their operation and development.The periodic adjustment of monetary policy has two important mechanisms of interest rate transmission and credit transmission for debt financing of mining enterprises in China.It is of great practical significance to study how to effectively reduce the risk of debt financing.In summary,this study takes into account the monetary policy data formulated by the Ministry of Finance and the Central Bank as the agent variable of monetary policy.After empirical research,it analyses the relationship between debt financing risk and monetary policy.Firstly,this paper systematically analyses the related theories of macro-monetary policy and micro-debt financing risk of mining enterprises and domestic and foreign literature,and then elaborates the characteristics of mining enterprises,financing status and related factors of financing risk in China.On this basis,this paper focuses on the analysis of the impact of monetary policy transmission mechanism on the debt financing risk of mining enterprises and puts forward research assumptions,and establishes the corresponding regression model.Finally,this paper chooses the relevant financial data of A-share mining listed companies listed on Shanghai and Shenzhen Stock Exchange from 2009 to 2017 as the research sample.Through descriptive statistics of the whole sample and sub-sample,and from the perspective of property rights nature,regional differences,enterprise size and political relevance,this paper uses multiple regression empirical test to test the impact of monetary policy on debt financing risk of mining enterprises in China.A series of robustness tests were carried out.The main empirical conclusions of this study are as follows:(1)Easy monetary policy can effectively reduce the risk of debt financing of mining enterprises;conversely,tight monetary policy is more likely to aggravate the risk of debt financing of mining enterprises.At the same time,the role of monetary policy has obvious lag,especially in the second year to maximize the improvement effect of monetary policy.(2)The resource industry in which the mining enterprises are located belongs to the key monitoring category of national policy.Creditors represented by banks,as a result of the guidance of "green credit" policy,lead to the impact of monetary policy on the debt financing risk of the mining enterprises,which is more obvious in the state-owned mining enterprises.Furthermore,because of the high sensitivity of small-scale mining enterprises to debt financing and the weak ability to resist external shocks,the impact of monetary policy on debt financing risk is more obvious in small-scale enterprises.(3)No evidence has been found to support that regional development and corporate political linkages can influence the relationship between monetary policy and debt financing risk of mining enterprises.The results show that the financing risk of mining enterprises is more affected by policies than by regional economic differences.Policymakers should consider the factors of regional resource and environment endowment differences.At the same time,although commercial banks have the motivation to transfer credit to politically related enterprises,the effect of these factors on debt financing risk of mining enterprises is not obvious because of interest rate,credit scale,approval and supervision.This paper not only provides empirical evidence for analyzing and forecasting the impact of monetary policy changes on the financing risk of mining enterprises,but also puts forward some constructive policy recommendations on this basis,which has strong practical guiding significance and participation value.