Research On The Influence Of Leverage Ratio Of Non-financial Enterprises On Stock Market Stability In China

In the context of tight demand,supply shock and weakening expectations,China’s structural deleveraging policy faces challenges.In this case,the enterprise is to increase leverage,steady leverage or leverage,it is worth discussing.The change of leverage ratio of non-financial enterprises will not only affect the macro economy,but also have a certain impact on the stock market.From this point of view,this paper explores the relationship between the leverage ratio of non-financial enterprises and the stability of the stock market,and puts forward corresponding countermeasures and suggestions for China’s structural deleveraging and the healthy development of the stock market.Paper first analyzes carding the related literature at home and abroad,then discusses the non-financial companies leverage effect theory basis and the influence mechanism of the stock market stability,think the non-financial corporate leverage through the enterprise financial risk and business investment affect stock market stability,the process,regulating effects of monetary policy,investor sentiment has the intermediary function.Then,using the data of 2,813 A-share non-financial enterprises in Shanghai and Shenzhen stock markets from the first quarter of 2005 to the first quarter of 2021 in 65 quarters,this paper empirically tests the influence of non-financial leverage ratio on stock market stability and verifies the transmission mechanism based on corporate financial risk and corporate investment.The moderating effect of monetary policy and the mediating effect of investor sentiment are further tested.It is found that the increase of the leverage ratio of non-financial enterprises in China will aggravate the volatility of the stock market with a significant lag.The leverage ratio of non-financial enterprises affects the stability of stock market by affecting the financial risk and investment of enterprises,but the influence based on the transmission mechanism of investment is greater.The uncertainty of monetary policy has a moderating effect on the relationship between the leverage ratio of non-financial enterprises and the stability of stock market,and the loose monetary policy environment will strengthen the negative effect between the two.Investor sentiment has an incomplete mediating effect on the effect of non-financial corporate leverage on stock market stability.Finally,from the perspective of how to reduce corporate leverage and maintain the stability of the stock market,the paper puts forward the countermeasures and suggestions that the macro policies should focus on stabilizing leverage and deleveraging,improving the comprehensive strength of enterprises,implementing flexible and accurate monetary policies and stabilizing investor sentiment.