Research On Influential Factors Of Leverage Ratio In Iron And Steel Listed Companies

The global economy has been hit hard in 2008,facing the danger of stagnation,the iron and steel industry achieve rapid growth in output because of four trillion plans,but growth only paying attention to the quantity and ignoring the quality has brought many problems,which results in overcapacity of iron and steel industry,high leverage ratio.The healthy development of the iron and steel industry is related to the sustainable development of the national economy,therefore,This paper takes the policy of "deleveraging" in the steel industry as the research background.First of all,the current situation of leverage ratio of steel enterprises is analyzed.,Then the paper analyzes the influence factors of the leverage ratio of steel enterprises and finds out the countermeasures to resolve the high leverage of steel enterprises.In this paper,iron and steel listed companies are taken as the research object,20 indicators of influential factors are selected from amacroeconomic level and microeconomic level,choose data of 34 listed companies from 2010 to 2016,analyzing empirically leverage ratio of influential factors.The conclusions of study are as follows: first of all,from 2010 to 2015,the leverage ratio of steel industry shows increasing trend,from 2016 to 2017 declines slightly,in addition,leverage ratio among listed companies varies greatly in the same year;secondly,through factor analysis,6 common factors extract from 20 factors affecting leverage ratio respectively,the ownership structure factor,macro economic factor,profitability factor,short-term solvency factor,operational capacity factor,interest rate factor;thirdly,among the six common factors,ownership structure factor and the leverage ratio showed a positive correlation.the short-term solvency factor,profitability factor,operational capacity factor and leverage ratio is negatively related,macroeconomic factors and the interest rate factor have no significant impact on Leverage ratio.On the basis of empirical research,combined with the current situation of the steel industry,put forward four measures to resolve the high leverage ratio of iron and steel industry enterprise: promote the listed companies to upgrade,enhancing profitability;encourage the listed companies to merge and reorganize,improving operation ability;explore debt-for-equity swaps and other ways to resolve the stock debt;expand the financing channels of listed companies,controling incremental debt.