Academic Journal of Business & Management, 2023, 5(26); doi: 10.25236/AJBM.2023.052607.
Hu Chaochao
School of Economics and Management, Guangxi Normal University, Guilin, China
Based on the Spatial Durbin Model, this study aims to examine the connection between the leverage ratio and systemic financial risk. The data utilized in this study is derived from 30 provinces, autonomous regions, and directly administered municipalities in China, covering the period from 2012 to 2022. The research findings indicate that: (1) there is a non-linear relationship between the leverage ratio of non-financial enterprises and systemic financial risk, characterized by a U-shaped curve, suggesting the existence of a threshold for the leverage ratio of non-financial enterprises. (2) The leverage ratio of non-financial enterprises in neighboring provinces affects the systemic financial risk of the focal province. Based on these results, this paper proposes strategies and recommendations for managing the leverage ratio of non-financial enterprises to mitigate systemic financial risks.
Spatial Durbin Model; Non-Financial Enterprise Leverage Ratio; Systemic Financial Risk
Hu Chaochao. Research on the impact of non-financial enterprise leverage ratio on systemic financial risks. Academic Journal of Business & Management (2023) Vol. 5, Issue 26: 39-45. https://doi.org/10.25236/AJBM.2023.052607.
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