Research on the Relationship between Financial Ecological Environment and Enterprise Financial Risk Based on Multiple Regression Model

Abstract

This article uses the entropy method to construct China's regional financial ecological environment index, constructs a multiple regression model, a mediation effect test model, and a heterogeneity analysis model to empirically test the impact of the financial ecological environment on corporate financial risks and its mechanism, and pass the robustness test and Endogenous analysis and robust research conclusions. The study found that: (1) A good financial ecological environment helps reduce corporate financial risks, and the four elements that make up the financial ecological environment, such as and financial development, government governance, economic foundation and system and credit culture play a role in preventing financial risks. (2) The financial ecological environment reduces the mechanism of action of enterprises by easing their financing constraints and preventing financial crises caused by imbalances in capital structure and liquidity problems. (3) Comparatively speaking, the financial ecological environment can more effectively reduce the financial risks of private enterprises and enterprises with higher industry concentration and higher R & D intensity. The research results in this paper show that building a good financial ecological environment in China can help reduce corporate financial risks, alleviate the status of corporate financing constraints, increase the efficiency of financial resource allocation, and achieve sustainable and healthy corporate development.