| At present,China's macro economy is facing the risk coming from both high leverage and the structural imbalances in leverage.To resolve this risk,the work of reducing leverage is imperative and will last for a long time.At the National Financial Work Conference in 2017,General Secretary Xi also proposed the keynote of reducing the leverage structurally.However,in the process of reducing leverage in the past two years,it caused some serious difficulties in the operation of financial institutions and difficulties in financing of corporations.The rapid fluctuation of corporate debt financing levels will certainly impact the business of the company.Therefore,it is particularly important to study the impact of corporate leverage,especially the change in leverage ratio,on the business performance of different ownership enterprises.This is an urgent issue that has to be studied in depth.And the results will support the decision of the national leadership and help the corporations to improve the efficiency of the use of funds.In this context,this paper hopes to delve into the question "How does the rate of change of leverage affect the company's business performance?" "What impact will the change in leverage ratio have on different ownership enterprises?".To this end,this article focuses on the impact of changing in the company's leverage ratio on business performance.In the first place,this article analyzes the theoretical and empirical research of other scholars.In the past research,although many scholars have analyzed the relationship between the company's leverage ratio and business performance.There are few researches focus on the comparation between different ownership companies and the dynamic variable-the rate of deleveraging.The research findings are not enough to explain the main contradictions in the current work of deleveraging in China.In order to solve this problem,this article has made some extensions to the existing research.Based on the capital structure theory and the existing empirical research,this article collects the important financial data of 2,300 listed companies from 2013 to 2017 based on the sample of non-financial companies listed on the A-share market in Shanghai and Shenzhen.The ownership of state-owned and private ownership is divided into two groups,including 912 state-owned listed companies and 1388 private listed companies.After that,this paper uses the panel data model to carry out regression analysis on the two groups of samples.In the regression analysis,considering the diversity of the business performance indicators,this article constructs the dependent variable of the model through factor analysis methods,with nine indicators in profitability,growth ability,solvency and operational capability.The empirical result shows that,the asset-liability ratio of China's state-owned listed companies and private listed companies is on a relatively high level.The operating performance of listed companies in China will decrease when the leverage ratio(asset to debt ratio,long-term borrowing rate,short-term borrowing rate)increase.At the same time,there is an inverted U-shaped relationship between the operating performance oflisted companies and the reduction speed in leverage ratio.The innovations of this paper are mainly reflected in three aspects: First,for the background of the deleveraging cycle,the dynamic variable,the rate of change in leverage,is introduced into this paper.And this paper use the dynamic system GMM model to make regression analysis.Second,to research the structural de-leverage,the enterprise is divided according to the nature of ownership.Third,in order to measure the diversity of performance indicators,this paper use the method of factor analysis to build the performance factor.Nonetheless,due to the availability of data,the research sample of this article only includes listed companies.In the future research,the research on non-listed company samples can be considered,to verify the robustness and scope of the research results. |
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