Abstract: By making use of the data of private listed companies from the 2005 to 2009, this paper applies the fixed effect model to empirically analyze the influencing mechanism of the real right reform which is marked by the implementation of the Property Law on the enterprise leverage ratio. The findings show that: (1) the implementation of the Property Law has significantly reduced the enterprise leverage ratio; (2) reducing the enterprise leverage ratio by the implementation of the Property Law is realized through strengthening the protection of the property rights; (3) through reducing the enterprise leverage ratio, the Property Law has optimized the enterprise capital structure. The enterprise is the microcosmic body which would generate financial risks, to reduce the enterprise leverage ratio is also to reduce the level of the social financial risks accordingly, which provides microscopic evidences for the fact that the property right reform can reduce the level of the social financial risks. Therefore, we should continuously strengthen the protection of property rights and further strengthen the protection of intellectual property and other intangible assets, so as to reduce the enterprise leverage ratio, optimize the capital structure, and release financial risks.

Key words: real right reform; enterprise leverage ratio; financial risk; fixed effect model; intellectual property protection