An Empirical Study on the Impact of Shadow Banking of Real Estate Enterprises on Debt Default Risk

Abstract

As a pillar industry in China, the real estate industry plays a crucial role in China's economic development. Of course, there are also many potential risks. Judging from the current situation, many real estate enterprises show the trend of shadow banking, and the scale is also expanding. The financial reports of some listed enterprises show that the total amount of entrusted financial management is as high as billions of yuan, which invisibly leads to the decentralized development of cash flow of enterprises, which is already tense, and creates many unfavorable factors for the real economy. However, under such obvious impact, why do a large number of real estate enterprises choose shadow banking, and what impact will it have on the debt default risk of enterprises? Under the above research background, this paper intends to explore the impact of shadow banking on the debt default risk of real estate enterprises, and at the same time, investigate the regulatory effect of enterprise leverage on the relationship between the above variables. It is hoped that through the empirical research in this paper, we can judge whether the shadow banking of real estate enterprises has exacerbated or alleviated the risk of debt default, understand the influence relationship between various variables through a detailed analysis of its theoretical transmission mechanism, and put forward policy recommendations for the implementation of the follow-up policies of the real estate industry in China.