The Impact Of External Guarantees On Corporate Financial Leasing

Financial leasing integrates financing and financial integration.With its low threshold,simple procedures,and long term,it has become one of the most important financing channels in the world.China's current financial leasing market penetration rate is relatively low compared to developed countries,but the development momentum is rapid,with a compound growth rate of up to 38% in ten years.For heavy asset industries such as manufacturing and transportation,the cost of equipment purchase is high,and the demand for capital is large.Objectively,it is necessary to seek multiple financing channels other than bank borrowing.Finance leasing has gradually become the most important source of financing for enterprises to increase production capacity First,the ratio of financial leasing applications in manufacturing and transportation is leading in all industries.Based on the financial lease debt substitution theory and the bankruptcy cost theory,this article empirically examines the impact of corporate external guarantees on financial leases.The research hypothesis is put forward: the credit risk brought by external guarantees is not conducive to enterprises to obtain incremental financing through bank loans,etc.,which drives enterprises to choose alternative financing methods in addition to bank credit.Enterprises with high guarantee ratios tend to choose relatively lower thresholds 1.Financial leasing with simple process;at the same time,the bankruptcy liquidation of the leasing enterprise under the financial leasing model does not involve leasing assets,which can help the lessor to avoid the impact of the bankruptcy cost of the leasing enterprise.Enterprises with high external guarantee ratios prefer to use financial leasing.This paper selects the five typical heavy assets industries of transportation,automobiles,chemicals,mechanical equipment,and electrical equipment,and has a high financial leasing utilization rate.The 2016-2018 data of 1018 A-share listed companies are used as samples for empirical analysis,using Logistic Regression model,the results show that: corporate financial leasing is positively related to the ratio of external guarantees.Corporate financial leasing is positively correlated with long-term liabilities and equity concentration,and has no significant correlation with corporate tax rates,profitability,cash flow,and growth capacity.