Research On The Influence Of Monetary Policy On The Deleveraging Of Listed Steel Enterprises

Due to the continuous optimization and upgrading of the structure,China’s economy has entered a new normal stage.Traditional steel industry enterprises not only face the problem of serious overcapacity,but also the problems such as excessive financial leverage ratio and insufficient capacity utilization rate keep emerging,and the profit margin of the entire steel industry continues to decline.In view of the prominent problem of excessively high financial leverage ratio,the state formulated the guidelines of "three cuts,one cut,one remedy" and took "deleveraging" as the core.Moreover,the idea of structural deleveraging was put on the agenda again in the recent economic work conference,which is enough to show the importance China attaches to "deleveraging".The iron and steel industry is a typical cyclical industry.In recent years,the trend of its leverage ratio continuously rising is moderating.In the supply-side reform,the overall tone of sound monetary policy is implemented.Is such monetary policy conducive to steel industry deleveraging?Although the steel industry has been cutting capacity continuously in recent years,the return on investment has been improved and the leverage ratio has been reduced,the reasonable capital structure is still some way off.Therefore,it is necessary to conduct an in-depth study on the phenomenon of high leverage in the steel industry,analyze the monetary policy currently implemented in China,and observe whether it conforms to the actual situation of dynamic adjustment of the capital structure of China’s steel enterprises.In this paper,by applying the theory of monetary policy,capital structure theory and combining the actual problem,and combining the related research results at home and abroad,summarizes the theoretical research results of the capital structure and the related research of the dynamic adjustment to leverage,factors influencing capital structure dynamic adjustment speed of macro and micro influence factors,on the basis of conducting research in this paper.This paper selects liugang group,a typical steel enterprise,as a case study,analyzes the current debt dilemma of the enterprise,analyzes the factors that cause its current status of high leverage ratio,and finally analyzes the relationship between the speed of dynamic adjustment of capital structure and the degree of monetary policy easing.In this paper,the influence factors of enterprise leverage level are sorted out theoretically,and the relationship between monetary policy changes and dynamic adjustment of capital structure is studied in combination with monetary transmission mechanism.This article choose 40 steelmakers in the a-share market in 2012-2018 panel data and data processing,the existing theoretical framework,the company build microscopic levels fixed effects model and study how to implement the optimal capital structure:secondly,the analysis of the macro level and micro level monetary policy as well as interactive items that connects the two influence factors such as building dynamic panel model,through the system GMM regression study monetary policy impact on corporate capital structure dynamic adjustment speed;In addition,the sample companies were grouped according to the level of leverage ratio,and the response speed of different companies to monetary policy was studied.The main conclusions of the empirical part of this paper are as follows:(1)there is an optimal capital structure of listed companies in China’s steel industry.(2)monetary policy is positively correlated with the speed of capital structure adjustment,and the response of low-leverage companies is more rapid.In addition,by setting control variables,this paper analyzes the influence of micro-characteristics of some companies on the speed of capital structure adjustment.Finally,on the basis of empirical analysis,from the macro and micro point of view of the iron and steel industry leverage ratio is too high policy and recommendations.