Research On The Impact Of New Financial Instrument Standards Implementation On Enterprise Financial Risk

In order to effectively prevent and control financial risks and promote economic progress in stability,the Ministry of Finance revised and issued the new Financial Instruments Guidelines on March 31,2017,requiring the listed enterprises listed at home and abroad to implement the new guidelines on January 1,2018,and other domestic listed A-share companies to implement it on January 1,2019.The reform of the new financial instruments standard is one of the most important changes in the capital market in recent years.This reform involves a major change in the classification and measurement of financial assets.The classification of financial assets has changed from four categories in the old standard to three categories.It has deep influence on the financial investment behavior of enterprises.In recent years,due to the excess capacity of real enterprises,the return on investment of real industry is much lower than that of virtual economy such as financial instruments.Enterprises have increased their holdings of financial assets to obtain higher income than the main business investment.Whether the implementation of the new guidelines can help enterprises better allocate financial assets and resolve financial risks through changes in its classification standards and methods remains to be empirically tested.Based on the above analysis,this paper takes the economic consequence theory,preventive savings theory and investment substitution theory as the theoretical basis for analysis,and carries out the empirical test.In this paper,the research sample of listed enterprises in 2017-2021 is used to construct a model for empirical analysis.Standards,first of all,to alleviate the endogenous problem,for 2018 A + H company take the lead in implementing new financial instruments formed quasi natural experiment policy effect,the implementation of the new standards lead to enterprise transactional financial assets holding share significant change,based on this study in this paper in the 2019-2021 after the full implementation of the sample test the transactional financial assets share on the impact of financial risk and financial flexibility as influence mechanism of intermediary role.The empirical results of this paper show that: first,the implementation of the new financial instrument standards will significantly reduce the level of corporate financial risk.Second,the implementation of the new standards prompts a large number of enterprises to reclassify their financial assets as transactional financial assets.The increase in the proportion of holding transactional financial assets reduces financial risks by improving the financial flexibility of enterprises.Thirdly,the impact of the increase in the proportion of transactional blended assets on the financial risk of enterprises is more significant in non-state-owned enterprises and enterprises with low financing constraints.This paper expands the research on the policy consequences of new financial instrument standards.In the previous literature,when studying the policy consequences of the new financial instruments standards,the main focus was on the impact on banks,insurance companies and other financial institutions.The research conclusion of this paper expands the research on the economic consequences of the implementation of the new financial instruments standards on non-financial enterprises,and provides supporting evidence for the further revision of the standards.