An Empirical Study On Corporate Leverage And Corporate Value Creation

At the Central Economic Work Conference,President Xi Jinping proposed for the first time that China needs to focus on “three visits,one drop and one supplement”,namely five tasks of capacity reduction,destocking,de-leveraging,cost reduction,and shortcutting.This paper focuses on the important task of “delevering levers”.After combing and summarizing classical theories and research results of previous generations,the leverage ratio of enterprises is further differentiated according to the source of funds and the purpose of use,further through the financial leverage ratio and business performance.The measurement of financial leverage rate and in-depth exploration of how to reduce the leverage ratio can more effectively improve the value creation insurance of Chinese enterprises.By selecting China's A-share market from the first half of 2011 to the first half of 2017,26 companies in banking and non-banking financial industries were involved.A total of 1,520 companies built balanced panel data.The industry as different clusters,use the fixed effect model to modify.The results of the study show that under the overall high leverage ratio and financial financial leverage ratio of Chinese companies,corporate total leverage ratio and financial financial leverage have a negative correlation with corporate market value creation based on the index of appreciation rate per market.,that is,further increase the company's total leverage ratio and financial financial leverage rate will reduce the company's value creation ability;while in the context of China's corporate operating financial leverage as a whole to maintain a low level,operating financial leverage will create market value for the company There is a positive correlation between the index of appreciation rate per share of the market,that is,increasing the operating financial leverage of a company can improve the value creation ability of the company.At the same time,the modelfitting coefficients indicate that the financial leverage ratio of financial operations has a greater influence on the value creation of the enterprise than the operating financial leverage ratio.That is,by controlling the financial financial leverage of the enterprise,the value creation ability of the enterprise can be more effectively enhanced.