Market-oriented Debt-to-equity Swap And Deviation Of Enterprise Risk Undertaking

In recent years,the economic environment has become increasingly complex,which puts forward higher requirements for the operation behavior of enterprises.Changes in the economic environment bring risks,which are closely related to benefits.When facing the investment opportunities given by the market,enterprises should reasonably weigh the opportunities and costs brought by taking risks and make appropriate risk taking behaviors.It is very important for enterprises to reduce the deviation of risk taking.After the financial crisis in 2008,with the development of China’s economy,problems gradually accumulated at the level of the real economy:the average debt ratio of enterprises is high,the risk of debt default is increasing and irrational risk-taking behavior occurs frequently.In order to solve the above problems,China promoted the supply-side structural reform,and issued the market-oriented debt-to-equity swap policy document in 2016.The research shows that the market-oriented debt-to-equity swap can have an impact on the future development of enterprises,but there is no paper studying relationship between the deviation of risk taking and market-oriented debt-to-equity swap policy.In view of the above background,this paper raises the following questions: after the market-oriented debt-to-equity swap,whether the deviation of risk bearing will be reduced in the operation process of enterprises.This paper takes the non-financial listed companies of Shanghai and Shenzhen A-shares from 2011 to 2021 as the research sample and selects the enterprises that carry out market-oriented debt-to-equity swap as the research objects.This paper studies the impact of market-oriented debt-to-equity swap on the deviation of enterprise risk taking,and further studies the differential impact of market-oriented debt-to-equity swap according to the degree of marketization,the category of state-owned enterprises and the level of state-owned enterprises.The following conclusions are drawn: Market-oriented debt-to-equity swap can reduce the deviation of enterprise risk bearing;The implementation effect of debt-to-equity policy in regions with higher degree of marketization is better than regions with lower degree of marketization;Compared with functional state-owned enterprises,the implementation effect of market-oriented debt-to-equity policy of competitive state-owned enterprises is more obvious;Compared with central state-owned enterprises,the implementation effect of market-oriented debt-to-equity policy of local state-owned enterprises is more obvious.The main contributions of this paper are as follows: First,most of the existing studies on the market-based debt-to-equity swap are case studies,but empirical studies are limited.This paper extends the economic consequences of the marketoriented debt-to-equity swap to the deviation of risk taking,using the year-by-year PSM and multi-period DID models to deeply explore the mechanism of the relationship.Second,most of the existing research is to divide enterprises into state-owned enterprises and private enterprises for heterogeneity analysis,and less to consider the internal classification of state-owned enterprises.This paper further analyzes the degree of marketization and the classification of state-owned enterprises,further detailing the research on marketization of debt-to-equity swap and risk taking.