The Impact Of Supply-Side Reforms On The Level Of Corporate Leverage

The supply-side structural reform at the end of 2015 marked the beginning of a new round of deleveraging policies.The deleveraging policy was industry-oriented and targeted high-leverage industries,followed by "structural" de-leveraging with stateowned enterprises as the focus.lever.This article uses the convening of the Central Economic Work Conference in December 2015 as a natural quasi-natural experiment,using the data of A-share listed companies in Shanghai and Shenzhen from 2013 to 2019 to explore the effect of deleveraging and the heterogeneity of performance.The research results show that the deleveraging policy has achieved significant results,and there is obvious heterogeneity in corporate ownership,corporate size,zombie and non-zombie companies,corporate profitability,and regions with different levels of credit marketization.Research on the new derivative indicators based on the composition of the leverage ratio found that the policy achieves the purpose of deleveraging by influencing current liabilities and short-term borrowing.The heterogeneous performance of deleveraging effects and channel research reflect the differences of different types of companies affected by policies,and provide an important reference for the next step of policy formulation.The zombie companies that were protected in the previous round of deleveraging policies should be given more precise identification and strikes.The next round of deleveraging work should combine the structural differences in the current corporate deleveraging effects,and at the same time increase the degree of marketization in the region.The market adjusts the quality of loans.Finally,policies must be strengthened to encourage enterprises to optimize and adjust the long-term capital structure.