Research On The Influence Of Banking Competition On Enterprise De-leverage

Since the 21 st century,the leverage level of Chinese enterprises has been rising rapidly.The state has issued a series of policies to actively and steadily reduce the leverage level of enterprises.How to reduce the leverage ratio of enterprises has become an important issue.It is undeniable that in China’s indirect financial system dominated by banks,the credit decision of the banking industry has an extremely important influence on the financing and leverage level of enterprises.At the same time,China’s financial system is undergoing market-oriented reform,the number of banking branches has increased,and the degree of banking competition has increased.Therefore,under the above background,this paper studies the influence of bank credit decision on enterprise deleveraging from the perspective of banking competition,which is conducive to enriching the influencing factors of enterprise deleveraging,and the theoretical and empirical research of financial market competition mechanism effectively promoting enterprise deleveraging,and providing empirical evidence for supporting the market-oriented reform of banking industry.Firstly,this paper sorts out relevant literature research,analyzes the influence of banking competition on the overall deleveraging of enterprises,the debt maturity of enterprises and over-indebted enterprises through theoretical basis,and studies the influence mechanism of banking competition on enterprise deleveraging.Then,we select the panel data of China’s A-share listed non-financial enterprises from 2007 to 2020,use the data of commercial banks’ financial licenses to construct the index of banking competition degree,and use the fixed effect model to analyze and test the influence of banking competition on enterprise deleveraging,and draw the following conclusions: with the increase of the number of bank branches,the intensification of banking competition degree promotes enterprise deleveraging;Shorten the debt maturity of enterprises and significantly reduce the long-term debt ratio;Promote the deleveraging of over-indebted enterprises.At the same time,the influence of banking competition on the deleveraging of enterprises with different characteristics is heterogeneous,and the more obvious the deleveraging is in non-state-owned enterprises,small-scale enterprises and enterprises with high profitability.In addition,the intensified competition in the banking industry reduces the leverage ratio of enterprises by increasing the agency cost of enterprises.The above conclusion shows that the intensification of competition in the banking industry is generally beneficial to enterprises to adjust the debt ratio and optimize the capital structure,but there is still a certain loss in the efficiency of credit resource allocation.Finally,according to the research conclusion,this paper puts forward reasonable policy suggestions from the perspective of market-oriented competition of banking industry and government macro-control,combined with the background of China’s financial system.