Research On The Impact Of Financial Asset Allocation On Corporate Risk Taking—Under The Adjustment Of Leverage Ratio

With the continuous improvement of the economic development,the degree of activity in the financial market has increased significantly,and more and more enterprises have partiipated in the financial investment.The specific manifestation is that real enterprises tend to hold more monetary assets.First,financial assets are generally more liquid than fixed assets.Therefore,industrial enterprises choose to hold more financial assets for the purpose of using idle funds or earnings management.Secondly,financial assets usually have a high rate of return.According to relevant data,at present,the average profit rate of my country’s financial and insurance industries is much higher than that of the real economy.Therefore,driven by the motive of profit-seeking,corporate decision makers tend to Allocate more financial assets to expect excess returns in a shorter period of time.However,the high yield of financial assets is also accompanied by high risks.If an enterprise over-allocates financial assets for the purpose of pursuing short-term high yield,when the financial market is affected by macroeconomic fluctuations and market policies and other factors,it will cause huge fluctuations.This will lead to a sharp increase in the volatility of earnings and a sharp rise in the risks that companies take.In addition,since the resources owned by real enterprises are limited,the more financial assets allocated,the less resources can be used in the real production and operation field,which will cause excessive flow of internal resources to the financial field,making the financial assets of the enterprise less.The proportion of holdings has gradually increased while the proportion of investment in fixed assets has gradually decreased.At the same time,it leads to insufficient investment in corporate entities,innovation and R&D,which reduces investment efficiency and improves the level of risk-taking of enterprises.Finally,due to the increase in the allocation of financial assets,the increase in the rate of return on financial investment has stimulated the willingness of decision makers to make further financial investment and actively improve the level of risk-taking.Based on the perspective that the corporate leverage ratio has continued to rise and adjusted upwards in recent years,this paper conducts research from both theoretical and empirical aspects.Focusing on the two core concepts of financial asset allocation and enterprise risk-taking,combined with the relevant research of scholars,this paper first theoretically probes into the conduction path and sorts out the relationship mechanism between the two,and then empirically uses my country’s Shanghai and Shenzhen A-share non-financial listed companies are the research samples,and the financial data of non-financial companies from 2007 to 2020 are obtained from databases such as CSMAR and Wind to test the leverage ratio and the ratio(or range)of leverage ratio adjustment to financial asset allocation.Whether the relationship between enterprise risk-taking and enterprise risk-taking plays a moderating role,and using the intermediary effect model to explore which path choice of financial asset allocation affects the level of enterprise risk-taking,and finally conducts heterogeneity according to the industry and growth ability of the enterprise.Sexual Analysis.Through empirical research,it is found that: firstly,the increase in the proportion of financial assets of non-financial enterprises will directly lead to an increase in the level of enterprise risk taking.This phenomenon is more significant in the long-term financial assets held by enterprises,but not in short-term financial assets.The allocation of shortterm financial assets is usually motivated by liquidity considerations that do not increase the level of corporate risk-taking.Secondly,it is found that leverage ratio and the ratio(or magnitude)of leverage ratio adjustment play a positive adjustment role between financial asset allocation and corporate risk taking level.Then,through the intermediary effect model,it is verified that increasing the allocation of financial assets improves the risk-taking level of enterprises by affecting the rate of return of financial assets and the investment ratio of fixed assets.Outcomes are a key factor in the rise in corporate risk-taking levels.Finally,by summarizing the theoretical and empirical research results,in view of the risks that enterprises may face in the process of allocating financial assets,combined with the extent and speed of the adjustment of corporate leverage ratios,relevant measures and suggestions are put forward for enterprises in different industries and growth capabilities.Financial regulatory authorities provide corresponding empirical evidence.