Research On The Influence Of Corporate Financial Asset Structure On Its Own Leverage Ratio

As an important factor affecting corporate decision-making,leverage ratio has a wide-ranging impact on corporate behavior.It is a long-term and unavoidable problem.From a microscopic perspective,excessive leverage ratio will expose companies to liquidity risks and solvency risks.This will lead to excess production capacity and deterioration of profits,and at worst,will make the company fall into a debt crisis trap.From a macro perspective,the leverage risk of many large companies will be transmitted through leverage risk,causing instability in the entire financial system,thereby hindering economic growth.Therefore,how to make the leverage ratio of the corporate sector continue to stabilize and decrease to a reasonable level is still a question worthy of study.In light of my country’s economic reality,the widening gap between the return on real investment and financial investment has made enterprises that already have excess production capacity gradually shifted from the real economy to finance and other industries.Combining financial asset allocation with corporate leverage ratios will help non-financial companies adjust their leverage ratios,allocate financial assets rationally,and make them better serve the real economy.This paper takes the motivation of enterprises to allocate financial assets as the starting point,and uses three indicators: the proportion of financial assets in the total assets of the enterprise,the proportion of short-term financial assets in the total assets of the enterprise,and the proportion of long-term financial assets in the total assets of the enterprise.To describe the structure of financial assets,to reveal the differential impact of financial assets at different levels on the leverage ratio of enterprises,and finally to further examine the heterogeneity of impact from the perspective of scale,profitability and regions.Using the balanced panel data of A-share non-financial listed companies in China’s Shanghai and Shenzhen stock exchanges from 2011 to 2020,this paper uses a two-way fixed-effect model to test the impact of financial asset structure on corporate leverage ratios,and further examines the scale heterogeneity of the impact,Earnings status heterogeneity and regional heterogeneity,and endogenous problem processing and robustness test are carried out.Finally,the following conclusions are drawn: First,on the whole,increasing financial assets has a certain positive impact on reducing the level of corporate debt,but there may also be some companies that use leverage to allocate financial assets.Second,financial assets of different maturities have different influence paths and degrees of influence on corporate leverage ratios.More attention should be paid to the proportion of short-term financial assets in the structure of financial assets.Third,the increase in the proportion of short-term financial assets has a more significant effect on the downward adjustment of corporate leverage ratios in small and medium-sized enterprises in the eastern region.more significantly.Based on the research results,the following countermeasures and suggestions are put forward: improve the liquidity of financial assets and improve the financial market access standards;moderately hold short-term financial assets and prudently hold long-term financial assets;strengthen the supervision of financial speculation and regulate excessive speculation;Enterprises in the eastern region have a higher proportion of short-term financial asset allocation.