Volume 30, Issue 2, 2021
DOI: 10.24205/03276716.2020.4033
Heterogeneity Research on the Influence of Financial Asset Allocation on Enterprise Leverage Ratio from the Perspective of Enterprise Life Cycle
Abstract
Preventing and defusing systemic financial risks is of great strategic significance to the healthy development of China's finance. In view of the potential risks brought by high leverage, promoting structural reform on the supply side and lowering the leverage ratio by sector and industry have become the focus of supply-side reform in China for a long time now and even in the future. In this paper, the financial data of A-share listed non-financial companies from 2010 to 2019 are taken as samples. From the perspective of enterprise life cycle, the dynamic GMM model is mainly used for empirical analysis. Economic policy uncertainty and the interaction between monetary policy and financial asset allocation are introduced into the model to study how they affect the relationship between financial asset allocation and enterprise leverage ratio. The results show that the financial asset allocation behavior of enterprises to obtain financial flexibility will reduce their leverage ratio, and it will have a stronger effect on the leverage ratio of non-state-owned enterprises; Finally, the paper puts forward some corresponding policy suggestions.
Keywords
Enterprise life cycle; Allocation of financial assets; Enterprise leverage ratio; Heterogeneity analysis