Research On The Influence Of Capital Misallocation On The Behaviors Of Chinese Listed Companies

As the basic unit of the supply side of an economy and the main creator of social wealth and value,the investment activities,production and operation behaviors of an enterprise are directly related to the supply quality at the macro-economic level.At present,China's economy is in the crucial period of transforming from the quantity of economic growth to the quality of economic development.Deepening supply side structural reform and enhancing the ability of financial services to serve the real economy is an important guarantee for China's economic system of "focusing on building an effective market mechanism,dynamic micro main body and proper macro-control" under the new normal.However,the capital price distortion and capital misallocation caused by the lagged reform of capital factor market have seriously hindered the high-quality development of Chinese enterprises,and become a "stumbling block" in accelerating the transformation of economic development mode and improving the overall production efficiency of society.In view of this,from the perspective of capital structural allocation,this paper uses the micro data of China's A-share listed companies in 2007-2018 to explore the impact of capital misallocation on the behavior of China's listed companies.Combined with the established strategic objectives of the construction of China's innovation oriented country,the increasingly prominent pattern of "getting rid of the real to the virtual",the new development model of the construction of open economic system,and the policy of "tax reduction and fee reduction",this paper makes an in-depth and comprehensive study on the capital misallocation of Chinese listed enterprises from the four dimensions of enterprise innovation,enterprise financialization,enterprise direct foreign investment and enterprise tax burden For dynamic impact.The research results show that the capital use cost and productivity "dislocation" caused by capital misallocation makes some enterprises gain comparative advantage due to the low capital use cost,but this competitive advantage maintained by non-market forces is not sustainable,and further worsens the factor endowment structure among enterprises,and reduces the development of listed enterprises in China as a whole Exhibition quality.Specifically:(1)Capital misallocation restrains the growth of the quantity and quality of innovation,improves the risk of innovation and causes substantial loss of innovation.Compared with the small and medium-sized board and gem enterprises,labor-intensive enterprises and foreign-funded enterprises,the impact of capital misallocation on the innovation activities of the main board listed enterprises,capital intensive enterprises and domestic enterprises is more serious.On the surface,the positive intermediary effect of financing constraint weakens the negative effect of capital misallocation on the quantity of innovation of state-owned enterprises,improves the quality of innovation of private enterprises,and reduces the risk of innovation of the whole enterprise.But in essence,capital misallocation increases the cost of capital use of high productivity private enterprises in disguise,intensifies the financing constraint faced by private enterprises,and further improves the private enterprises The innovation risk of an enterprise results in the decrease of its innovation quantity and the innovation loss of the whole society.To speed up the correction of financial factor market distortions,establish and improve a multi-level capital market and regulatory system,and fully promote the marketization of capital factors are the key to effectively resolve the current difficulties of Chinese enterprises' innovation investment and financing,and reduce the losses of enterprises' innovation.(2)Capital misallocation promotes the financial behavior of enterprises and reduces the profits of financial channels.There is asymmetry in this effect.In state-owned enterprises,secondary industry enterprises,labor-intensive and technology intensive industries,enterprise financing is more prominent;in private enterprises,small-scale enterprises,first and third industry enterprises and labor-intensive enterprises,financial channel profit is more obvious and less.Further,combined with the productivity of enterprises,it is found that capital misallocation intensifies the whole enterprise's financialization mainly by improving the financialization degree of low productivity enterprises,reduces the whole enterprise's financial channel income by reducing the financial channel income of low productivity enterprises,and has no significant impact on high productivity enterprises.The mechanism research shows that the role of capital misallocation in enhancing corporate finance is mainly realized by reducing corporate entity profit margin and increasing corporate short-term loan channels.At the same time,the decrease of entity profit rate and the increase of short-term loan can weaken the negative effect of capital misallocation on the profit of financial channel.Therefore,in the process of deepening the reform of the financial system and enhancing the financial service to the real economy,we need to pay special attention to the promotion of the dislocation of the cost of capital use and productivity caused by the capital misallocation to the enterprise's financialization,further improve the enterprise's real profit rate,and resolve the phenomenon of "short loan and long investment" in the enterprise's production investment.(3)Capital misallocation promotes the level of OFDI of Chinese enterprises,especially for domestic enterprises,capital and technology intensive enterprises and large-scale enterprises.Compared with non tax avoidance investment and "along gradient" investment,the "reverse gradient" investment and tax avoidance investment of domestic enterprises have increased significantly,that is to say,some OFDI caused by capital misallocation has institutional escape and tax avoidance motivation.In addition,capital misallocation significantly reduces the possibility of OFDI decision-making,non tax avoidance investment decision-making and overseas direct investment to low,medium and high-income countries,but significantly improves the tax avoidance investment tendency of enterprises.OFDI caused by capital misallocationing will have a significant "crowding out" effect on domestic investment.According to the samples of enterprise ownership,factor intensity and enterprise scale,it is found that the substitution effect is more serious in labor-intensive industry enterprises and large-scale enterprises;there is heterogeneity in different ownership enterprises,and for private enterprises,the improvement of their overseas investment level will be slow Understand the negative impact of capital misallocation on domestic investment.Under the background of imperfect capital market in China,we should not only pay attention to the quantity of FDI,but also recognize the possible risks and "quality" problems of OFDI.To speed up the construction of modern financial system,reduce the capital misallocation among enterprises in the industry,improve the measures of enterprises' foreign direct investment in combination with the needs of Chinese enterprises to "go global",is the key to improve the quality of Chinese enterprises' OFDI,give full play to the role of internal and external connections,realize the positive interaction between domestic investment and overseas investment,and reduce the capital flight of China.(4)Capital misallocation weakens the effectiveness of "tax reduction and fee reduction" policy,significantly improves the actual tax burden of listed enterprises,and mainly improves the tax burden level of such "weak" enterprises as private enterprises,small-scale enterprises,small and medium-sized enterprises and GEM listed enterprises.The improvement of enterprises' overseas direct investment,innovation output and financial level can alleviate the promotion effect of capital misallocation on enterprises' actual tax burden,and help enterprises reduce their tax burden.The effect of government subsidies on the reduction of corporate tax burden will decrease with the aggravation of capital misallocation.Under the condition that the capital misallocation remains unchanged,the more government subsidies,the higher corporate tax burden,to a certain extent,supports the existence of the problem of "listing income and expenditure" in China's tax practice.Under the framework of fiscal decentralization,further promoting the reform of financial marketization and optimizing the structure of tax system is an important starting point for expanding the overall tax base level of China and realizing the continuous and effective implementation of the policy of "tax reduction and fee reduction".The conclusion of this study reveals the causal relationship between capital misallocation and corporate behaviors,which provides a new perspective for a deeper understanding of the current behavior motivations of listed companies.While enriching and expanding the relevant literature on the allocation of factor resources,enterprise innovation,enterprise finance,foreign direct investment and enterprise tax burden,it also adds theoretical basis and empirical evidence for the formulation of relevant government policies.