The Influence Of Language Tense On Corporate Leverage And Its Mechanism

In the field of economics,there have been quantitative researches on such aspects as the influence of language on personal savings behavior and the influence of language on the preference of corporate cash holdings.Based on this type of research,this article studies the impact of language differences on corporate financing preferences and its mechanism,and explores how the national language tense affects companies’ expected perceptions of debt,which in turn affects corporate financing behavior and capital structure adjustments.Based on theoretical analysis,this study defines linguistic differences as the strength of linguistic tenses,and divides the country into two categories through strong linguistic tenses and weak linguistic tenses.It is assumed that companies in countries that use weak future linguistic tenses have Companies in countries that use strong linguistic tense language have lower leverage ratios,and different future tense language expression factors have a significant negative correlation with corporate leverage ratios.This paper uses regression analysis to study the influence direction and mechanism of language differences on corporate leverage.In addition,in order to eliminate the interference of endogenous factors,the double difference method was used to conduct a robustness test,and the "Hong Kong Return" was regarded as a representative event impact to study the impact of Hong Kong’s official language changes before and after the return in 1997 on the level of corporate leverage.influences.After analysis,this study concludes that:1)Linguistic tense expression will have a negative impact on the financing preferences of companies.Companies in countries that use weak language tenses usually use research results that have lower leverage;2)In the future Tense expression mainly affects thinking habits,and then affects the results of corporate capital.For example,empirical evidence proves that future tense expression affects the difficulty of borrowing by companies in various countries,and then affects corporate leverage;3)Future tense expression mainly affects capital Short-term liabilities in the structure.Based on the above conclusions,it can be seen that this research starts from a new perspective of language differences and focuses on the impact of cultural factors on corporate financing behavior.This type of research currently has fewer references in the country.The results of this article provide research in this field.Effective supplement;In addition,this research innovatively proposes new factors that affect the capital structure and financing behavior of enterprises,namely,strong and weak language tenses.This research will provide new evidence for the research and development of economics and other disciplines,as well as new regulatory ideas for regulatory agencies.