| Since the reform and opening up,the rapid development of China's economy is influenced not only by the formal system arrangement of law,politics,government,and media,but also by the informal system arrangement of culture,ethics,network,etc.This paper studies the informal system as the social trust level formed by enduring social development,and summarizes the formal system as regional legal system efficiency.Set the functional mechanism of social trust and legal system efficiency to the microscopic economic subject as the main line,the paper investigates and inspects the channel and consequences of its influences on micro resource distribution.As an informal foothold and representative of informal system,social trust influences the resource allocation efficiency of enterprises based on the following mechanism.Firstly,social trust is one kind of main reflect of social culture,and it is regarded as common behavior,sharing the same faiths,values,and temperament.Within the enterprise,it produces cohesion,cognition and common will partly.This can not only improve the staff's effort level,but also reduce the relevant supervision and transaction cost,so as to promoting the efficiency of the enterprise.Secondly,the collection of the social trust to the social relationship network,is referred to as people's socialized or hopefully socialized "social organization" by the social scientists.Different enterprises in the same social trust know what kind of behavior of each other,know their expectations,thus enhancing the possibility of cooperation.Thirdly,social trust is collection of reputation and way to distinguish reputation.Corporate reputation reflects the fulfillment of its promises to market,customers,suppliers,and the social public.Reputation mechanism is the best advertisement of the quality of their products and services.It can improve the sales ability of enterprises,thus affecting the behavior of the enterprise.Based on the above-mentioned mechanism of social trust,social trust can promote cooperation of the regional activity main body,reduce the transaction cost,lower the information asymmetry,and optimize the resource allocation.As the formal system,legal system efficiency affects the resource allocation efficiency of the enterprise based on the following mechanisms.Firstly,the legal articles and contents specify responsibilities and obligations.The law in this countrymainly represents by statute law,which defines the responsibility and obligation of the behavior of main body.By knowing the behavior consequences clearly in the business process,the enterprise can protect their own rights and interests,thus achieving the orderly competition and better benefits.Secondly,the provision of law and its fair implementation have deterrents.The promulgation of law has the processes of draft,review and decision,release,implement,record and so on.In the process of judgment and execution,the court needs the perfect program to ensure the validity and trustworthiness of the results.In this way,it can provide the long-term expectations to individual or enterprise's behavior,reduce the internal embezzlement and ensure the orderly market transaction,reduce the internal or external transaction cost,and improve the management efficiency of enterprises.Thirdly,the rule of law is with stability.In legal society,the promulgation or abolishment of the law is also with stability.It does not depend on the individual's mood changes,and will not be influenced by personal changes.In a stable legal environment,the enterprise will not only focus on the immediate interests of short-term speculation,but will carry out strategic layout according to the needs of enterprise development.Some investment may be short-termed,while,some may last for a few years or even decades.In this way,the enterprise will grasp various investment opportunities naturally to gain good results.Based on the efficiency analysis of the legal system mechanism,legal system efficiency promotes the enterprise resource allocation efficiency by prior expectation and latter punishment function to the action of main body.By using use social capital theory,political theory and new institutional economics,etc.,setting the Shanghai and Shenzhen a-share companies in 2007-2013 as sample,this paper researches on the above problems,and draws the following conclusion.Firstly,the higher social trust of the enterprise in the region,the better efficiency of the legal system.The lower organizational structure level of the enterprise in the region,the smaller control and cash flow ability of the corporate.The setting of the enterprise organization structure level and separation degree,depends on the top controller's private benefits and the bargaining power of enterprises,and the financing function of this hierarchical structure.However,the high level trust environmentrestrains the controller's private benefits and bargaining,which relieves the enterprise financing difficulties.While,in the high efficient law enforcement environment,it can not only improve expectations for the business owners' former action,but also pay a heavy price for its bad consequences.The enterprise does not gain motives of selfish controlling ability by setting multi-level control structure,while,the enterprise fears the future financing is restricted by the joint enterprise.In this way,the enterprise controller will lose the motive of allocating multilayer structure of the enterprise organization.Secondly,the higher social trust of the enterprise in the region,the better efficiency of the legal system.In general,the enterprise is inclined to appointing the external professional manager.In the region with high trust,it can promote the cooperation between people,especially ensure cooperation between strangers or people who do not meet often.In the region with high trust,the corporate is more likely to appoint the external professional manager.This will have a greater effect in the private enterprises in our country,as in state-owned enterprises,the government appointment still occupies the center of enterprise managers market,which is influenced little by the external environment,especially the influence of informal institution's social trust is smaller.In different legal system background,the owner will make different choice on hiring managers.The owners' largest concern is the agent cost problems when choosing the external professional manager.In the high efficiency of legal environment,the former deterrent effect of law and the latter punishment can work out a feasible terminal mechanism to solve the problem of agent problem.In this way,the business owners may prefer hiring external professional managers.Thirdly,although as the social trust an informal institutional arrangement and the legal effect as a formal institutional arrangement affect greatly on the enterprise organization structure separately,the influence of these two system on the enterprise organizational structure also cannot be ignored.As a result,we examine the impact of social trust on enterprise organization structure in different law enforcement background.The results show that in the efficient law enforcement environment,social trust can strengthen the negative impact on the level of the organizational structure and the separation degree of the two rights.It means under the effective law enforcement,dishonest people will pay more prices.In this way,people are likely to have the basic sense of trust to others.The effective law enforcement will provide cooperation basis to strangers,thus expanding the scope of the function of social trust.The main obstacle for the business owners selecting professional manager is the resulting agent problems.One kind of law promoting property rights and contract execution can not only provides mutual trust basis for the business partner,but also make people trust the law enforcement department,the court is trustable,enable fair trade and fulfill responsibilities required by the contract.Since we can find a solution to the problem of agency terminal mechanism in the high efficiency of legal environment,the business owner will prefer to hiring external professional managers.Therefore,the social trust and legal environment faced by the enterprise have the replaceable function,which influence the decision of manager hiring of the enterprise.Fourthly,based on the social trust,law efficiency and the direct channel check of R&D investment,we research on whether social trust and law efficiency can restrain the negative effects of corporate control right and cash flow right separation on R&D investment.The study shows that it can suppress the negative effects effectively of the two rights separation degree on R&D investment in both regions with high trust and law efficiency.Meanwhile,we research on whether social trust and law efficiency can restrain the negative effects of hiring external CEO to R&D investment.The research shows that it can suppress the negative effects effectively of hiring external CEO to R&D investment in both regions with high trust and law efficiency.Fifthly,we find that that the direct efficiency of social trust and law efficiency not only on the enterprise performance,moreover,they can also restrain the performance side effects resulted by the two rights separation of enterprise.However,we do not find that the social trust and law efficiency restrain the side effects on the enterprise performance resulted by appointing the internal professional manager. |
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