Research On The Influence Of International Capital Flows On Leverage Ratio Of Non-financial Enterprises

Since reform and opening-up,China has been actively connecting with the global market with the principles of open and inclusive development.International capital flow is an important starting point for China to realize the new development pattern of domestic and international cycles.With the increasing complexity and uncertainty of domestic and international economic environment,the international capital flow fluctuates frequently.International capital flow increases domestic capital liquidity and promotes rapid economic development;it expands investment and financing channels for enterprises to meet their production and operation needs.Diversified financing methods not only ensure the stable development of enterprises,but also the driving force behind the high leverage ratio.Therefore,it is of strategic significance to clarify the influence level of international capital flows on corporate leverage ratio and explore the action path of international capital flows on corporate leverage ratio for China to achieve the goal of deleveraging and promote the development of open economy to a higher level.This paper studies the impact of international capital flows on the leverage ratio of non-financial enterprises.This paper uses the panel data of 27773 non-financial listed companies from47 countries and regions from 2000 to 2021,takes the net international capital inflow of each country as the proxy variable of international capital flows,and constructs a fixed-effect model to measure the relationship between international capital flows and leverage ratio of non-financial companies.Furthermore,heterogeneity analysis is conducted for different firms and countries,and the influence mechanism of international capital flows on leverage ratio of non-financial firms is discussed based on asset prices,domestic credit and external regulatory channels.Finally,the empirical results are analyzed and summarized,and feasible policy suggestions are provided based on the actual situation.Through theoretical analysis and empirical test,the main conclusions of this paper are as follows: First,international capital flows will significantly push up the leverage ratio of non-financial enterprises.Secondly,among different types of international capital flows,equity capital flows will significantly reduce corporate leverage ratio,while debt capital flows will significantly increase corporate leverage ratio.But there is no significant relationship between international direct investment and corporate leverage ratio.Thirdly,the higher the level of national development and the higher the degree of capital openness,the lower the financing constraints of enterprises,and the more obvious the growth of corporate leverage ratio when international capital flows occur.Finally,international capital flows will significantly enhance their impact on corporate leverage through asset prices and external regulatory channels,while domestic credit channels will weaken the impact of international capital flows on non-financial corporate leverage.Based on the above conclusions,combined with the specific practice of deleveraging in China,this paper puts forward the following policy recommendations: First,strengthen and improve the international capital flow supervision system and information disclosure system,to prevent the financial risks caused by abnormal international capital flows.Second,further promote the "deleveraging" target of supporting policies to provide institutional guarantee for the development of enterprises.Third,banks need to reduce the financing constraints of enterprises according to their risk response ability,ensure prudent and prudent operation,and enhance the awareness of business risk prevention.Fourth,enterprises should establish and improve the debt risk early warning system,take active measures to maintain a reasonable leverage ratio.