Strengthen Supervision Of Untrustworthy Individuals And Alleviate Excessive Liabilities Of Private Enterprises

The Nineteenth National Congress Report and the Central Economic Work Conference have repeatedly stressed the need to focus on preventing and resolving financial risks.Private enterprises are an indispensable part of China's socialist economic system.They follow the market rules for free development.Compared with the state-owned enterprises lacking government intervention constraints,the government before the 18 th National Congress of the Communist Party of China has weak supervision over the untrustworthy people and is prone to excessive debt.However,it is important to alleviate the excessive debt of private enterprises to the healthy development of private enterprises and to prevent and resolve financial risks.It is clear that after the 18 th National Congress of the Communist Party of China,the government strengthens the supervision of untrustworthy people to alleviate the effectiveness of excessive debts of private enterprises and the internal and external operating environment of enterprises.The impact of the effectiveness of the trustee's regulatory policy is crucial.This paper first defines the relevant basic concepts,and analyzes the status of debt and supervision of listed private enterprises in China.Secondly,combined with the theory of corporate credit risk,this paper analyzes whether to strengthen the supervision of the untrustworthy in each region and strengthen the influence of the supervision of the untrustworthy on the level of private over-debt,and further analyze the agency cost by combining the principal-agent theory,and signal transmission theory.The market environment strengthens the supervision of untrustworthy people to alleviate the impact of private excessive debt levels,and proposes relevant research hypotheses.Thirdly,the empirical samples related to China's A-share listed private enterprises from 2009 to2017 are selected.The propensity score matching method(PSM)?difference-in-difference method(DID)and multiple linear regression analysis are used to construct the regression model according to the corresponding research hypotheses.Finally,statistical analysis is carried out on the full sample and the segmented sample to test the effect of strengthening the supervision of the untrustworthy person on alleviating the excessive debt of private enterprises and the impact of the internal agency cost and the external market environment on the implementation of the policy.The results of this paper show that since the supervision of the untrustworthy people in the 18 th National Congress of the Communist Party of China,the excessive debt level of private enterprises has been effectively alleviated,and the supervision intensity is significantly positively correlated with the excessive debt relief of private enterprises.The higher the first type of agency costs of private enterprises,the above relationship The weaker the effectiveness;the higher the cost of the second type of agency,the stronger the effectiveness of the above relationship;the higher the level of marketization and the level of rule of law,the more effective the above policy implementation.This paper studies the excessive debt level of private enterprises with the perspective of strengthening the supervision of untrustworthy people,and analyzes the impact of strengthening the supervision policy of the untrustworthy people on alleviating the effectiveness of excessive debt of private enterprises from the perspective of agency cost and market environment,enriching the existing excessive debt research.The literature on the topic expands the new framework for the relationship between the external environment and corporate liabilities.Based on the above research conclusions,this paper believes that to prevent and mitigate the financial risks of excessive debt of private enterprises,enterprises should pay attention to:(1)optimize internal corporate governance and capital structure;(2)industry regulatory authorities should improve the disclosure mechanism of untrustworthy people and strengthen the letter of trust.The punishment of private enterprises,the supervision of the internal governance of the company and the promotion of the marketization process and the improvement of the legal environment to resolve the debt risks of private enterprises.