Research On Enterprise Leverage And Regional Financial Risk

In recent years,China's economy has developed by leaps and bounds,and a lot of risks have been accumulated in the process of leveraging to promote economic development,and the debts of the government and enterprise departments have risen steadily.The current financing path of our country is mainly indirect financing.The non-financial enterprise sector has a prominent problem of increased leverage.A high level of leverage does not mean an inevitable outbreak of debt crisis,but an excessively high level of leverage may lead to China 's economic and financial environment.It is more complicated,which leads to financial and real economic instability.Former central bank governor Zhou Xiaochuan pointed out at the two national conferences in 2018 that the future trend is to stabilize leverage,reduce leverage,strengthen financial supervision and control debt scale.However,under the new normal,weaker capital flows,lower returns,tighter regulation,a sharp increase in the debt repayment pressure of economic entities,and a sharp increase in non-performing debt of financial institutions,which will cause regional financial risks to spread rapidly among various economies and economic sectors.It is possible to develop into systemic financial risk.Regional financial risk is the fuse of systemic financial risk,which in turn will exacerbate the contagion of regional financial risk.Therefore,studying the impact of corporate leverage on regional financial risks is of great significance for exploring how to reduce systemic financial risks,optimize corporate financing structure,and maintain interregional financial stability.This article first introduces the concept of corporate leverage ratio,the reasons for the rise,and the concept and mechanism of regional financial risk,and theoretically analyzes how corporate leverage ratio affects regional financial risk.According to the difference in debt scale and development level between different provinces and cities,the panel data model was constructed using panel data from 31 provinces and cities in China from 2009 to 2018,and the listed company 's asset-liability ratio was used to reflect corporate leverage as an explanatory variable,and select appropriate control variables,use principal component analysis to construct regional financial risk index as the explanatory variable,and select individual fixed-effect model as the research model by Hausman test.The company leverages the eastern,central,western and northeastern regions of China Anempirical analysis on how to influence regional financial risks is conducted,and enterprises are divided into large enterprises,medium-sized enterprises,and small and micro enterprises.The analysis results show that: first,from the perspective of corporate leverage ratio,enterprises in the eastern region have lower leverage ratios,while enterprises in the central and western regions and northeast regions have higher leverage ratios.Second,from the perspective of regional financial risk,the regional financial risk in the central region,western region and northeastern region is usually higher than that in the eastern region;the regional financial risk in the western region is the most volatile and the eastern region is the least volatile.Third,from the perspective of the relationship between the two,the leverage ratio of large enterprises and small and micro enterprises in the eastern region has a significant impact on regional financial risks;The impact of the three types of corporate leverage ratios in the central region on regional financial risks is not much different;while the western region and The leverage ratio of the three types of enterprises in Northeast China has no significant impact on regional financial risks.In response to the above conclusions,this article puts forward corresponding suggestions to reduce regional financial risks.