The Influence of Debt Financing Structure on Corporate Financial Risk

The consistent increase in corporate leverage ratios in China has raised concerns about systemic risks. Using A-share non-financial listed companies from 2015 to 2024 as a sample, this paper empirically examines the impact of debt financing structure on corporate financial risk and its variation across industries. The study finds that: First, debt financing structure is positively correlated with corporate financial risk, meaning an increase in the debt financing ratio significantly exacerbates corporate financial risk; Second, compared to asset-heavy industries, the positive impact of the debt financing structure on corporate financial risk is more pronounced in asset-light industries. This research provides a theoretical basis for differentiated corporate leverage control policies.