Can Reducing Debt Ratio Improve Corporation Performance For The Suspended IPO Companies?

Financing will change the company's asset-liability ratio.What effect will the change in the asset-liability ratio have on corporate performance? This article uses the special institutional background of the IPO suspension of the Securities Regulatory Commission to take listed companies that have passed the review of the issuance committee but suspended financing due to the suspension of the IPO of the Securities Regulatory Commission as an example.We analyze the decline in their asset-liability ratio will increase corporate performance or reduce for the financing of these companies.Due to the existence of the suspending of the IPO of the Securities Regulatory Commission,a number of companies have passed the review of the issuance committee,the financing was suspended due to the suspension of the IPO of the Securities Regulatory Commission.And the Securities and Futures Commission resumed the IPO at an uncertain time later.The actual financing shall be carried out after the approval is approved.In this paper,these listed companies are used as the treatment group,and the general listed companies with normal fluctuations in asset-liability ratios are used as the control group.Using the data of the treatment group before and after listing,this paper analyzes how a decline in the liabilities rate affects business performance through the propensity score matching method and the double difference method.Firstly,this article uses the propensity score matching method to match the control group companies with similar characteristics to the treatment group before listing.First,select a matching model through the logit model,and use the 1:1 proximity matching method to perform pre-listing feature matching based on the matching model to match sample companies with similar characteristics.Second,use the balance index feature and propensity score distribution map to match the effect The test results show that the matching model in this paper is more suitable and the matching effect is good.Third,the robustness test of the matching estimation results is performed.This paper uses the kernel matching method to perform the robustness test.The test results show that the 1:1 proximity matching method,the matching effect and matching result are more robust.Secondly,this paper uses the matched sample data to estimate the DID model.First,the estimation results of the DID model show that compared with the asset-liability ratio of general listed companies in operation,the sudden decline in the asset-liability ratio of financing listings has led to a significant decline in corporate performance.Second,the robustness test results from the fictitious treatment group,replacement control group,and replacement of outcome variables show that the DID estimation results are more robust.Finally,this article discusses the mechanism by which the asset-liability ratio affects corporate performance from four aspects: human capital,governance structure,R&D investment,and debt capital cost.The results show that the corporate debt ratio can affect corporate performance through human capital,governance structure,R&D investment,and the cost of debt capital.The research in this paper finds:(1)The decline in corporate debt ratio can lead to the decline of corporate performance.(2)The decline in the company's asset-liability ratio has affected the company's human capital,governance structure,R&D investment,and debt capital cost in four ways,resulting in poor corporate performance.