Research On The Characteristics Of Zero Leverage Listed Companies In China

Currently,China's economy is facing a complicated situation.The difficulty and high cost of financing have become major problems affecting economic transformation and upgrading.In recent years,some scholars have found that the zero-leverage phenomenon of listed companies in some developed capital markets is becoming more and more prominent,and conducted in-depth research on a large number of zero-leverage enterprises.The optimal balance theory and the pecking order financing theory are two classical capital structure theories.They all agree that companies should first choose the financing mode with appropriate liabilities in the arrangement of financing structure.Zero leverage company appeared obviously violates the classical capital structure theory,but the research on the current Chinese economy faces the question of corporate financing pressure has important guiding role,a series of most studies only stagnation in domestic financial point of view,based on the level of corporate governance and the analysis of its value creation ability is very rare,especially in the situation of continuous zero leverage.Based on the mean T test,binary choice Logit model,and binary choice quantile regression model,this paper selects the data of a-share listed companies from 2014 to 2017 to test the influence of ownership structure,enterprise size,management incentive,characteristics of the board of directors and ownership nature on the company's choice of zero leverage strategy.This paper analyzes the characteristics of zero-leverage companies in China and discusses the impact of corporate debt financing decisions on their value.The research finds that the zero-leverage phenomenon of Chinese listed companies has distinct Chinese characteristics.The zero-leverage phenomenon of Chinese companies is expanding,and some of its characteristics are very similar,such as small scale,short listing period,low investment level and high profitability.From the internalperspective,the zero-leverage decision of Chinese listed companies is more determined by equity concentration.The ownership nature of listed companies has a negative regulating effect on the company's choice of zero leverage policy,and the "heterogeneity" of the separation degree of two rights and company size is extremely prominent.At this time,the smaller the separation degree of two rights and company size,the more obvious the tendency of the company to choose zero leverage policy will be.In addition,it is found that there is no significant difference in the influence of different incentive systems(equity incentive,compensation incentive,combination of equity and compensation)on the zero-leverage policy of listed companies.There is no positive match between equity incentive and compensation incentive for listed companies to adopt zero leverage strategyIn effect.Corporate capital structure often affects the effectiveness of corporate governance structure and the company's value creation ability.In this paper,the data of a-share listed companies from 2007 to 2017 were selected,and the relationship between continuous zero leverage and the company's value creation ability was investigated by means of propensity score matching method,double difference model and variance analysis.The research proves that the zero-leverage enterprise has higher value creation capacity than the leveraged enterprise under the condition that other conditions remain unchanged,which breaks the classical theory of capital structure.In the process of enterprise production and operation,the choice of debt tax shield effect and zero leverage policy is more inclined to zero leverage policy.The behavioral motivation is mainly reflected in further improving the financial sensitivity of the company,so as to strengthen the production and operation efficiency and management effectiveness of the company,thus expanding the company's profit space and providing guarantee for the long-term healthy development of the company.Under the policy of zero leverage,on the one hand,employees' enthusiasm for work has been greatly increased,and work efficiency and quality have been on the rise to further reduce the company's operating costs and improve the efficiency of capital utilization.On the other hand,driven by the zero-leverage policy,the company will pay more attention to the maintenance and development of the market,and further improve the profitability of the company by maintaining the market share,so as to improvethe company's value creation ability.