Research On The Difference Of The Impact Of Financial Asset Allocation On Corporate Leverage

Chinese economic development has changed from high-speed growth to low-to-medium speed growth.The economy is in a "three-phase superposition"period and structural problems are gradually emerging.One of them is the high leverage of non-financial companies.Since the implementation of supply-side structural reforms in 2015,deleveraging has achieved remarkable results.However,the trend of the leverage ratio of state-owned enterprises and non-state-owned enterprises of China are clearly differentiated.In addition,the current trend of"financialization" of Chinese enterprises is significant,the proportion of enterprises'allocation of financial assets has gradually increased,and the problem of "Away from the Real Economy" has appeared.What impact will the company's financial asset allocation behavior has on corporate leverage?How does this effect's differ among companies with different property rights?The results of these issues are of great significance to how to deleverage and guide funds into the real economy.First,this thesis sorts out relevant literature,collates existing studies on the theory of corporate leverage determination,financial asset allocation and leverage ratios,and differences between enterprises with different property rights.After that,the leverage determination model of financial asset allocation behavior is added as the benchmark model for the study.Secondly,the data of Chinese non-financial listed companies from 2009 to 2019 were used to verify the impact of financial asset allocation on corporate leverage and the difference it exhibited in companies with different property rights.Third,analyze the moderating effect of industry categories on heterogeneity.The results show that the allocation of financial assets in order to obtain financial flexibility will reduce corporate leverage and have a stronger effect on non-state-owned enterprises.The allocation of financial assets to obtain high financial returns will increase corporate leverage and there is no significant difference between state-owned and non-state-owned enterprises.The above differences are not consistent across industries,and will be affected by the type of industry.Finally,the countermeasures are proposed.The government should formulate a detection index system based on the allocation of financial assets of enterprises,and smooth the difference in leverage between state-owned and non-state-owned enterprises by setting thresholds and strict supervision.The government should adopt quantitative easing monetary policy in the short term to smooth the negative effects of deleveraging.In the long run,the government should fundamentally solve the problem by developing multi-level financing markets and adjusting the assessment and incentive mechanism for state-owned enterprises.