| The development experience of more than 40 years of reform and opening up shows that "continuously expanding opening up,raising the level of opening up,and promoting reform and development through opening up are important magic weapons for continuous new achievements in my country’s development." During the "14th Five-Year Plan" period,my country will enter a new development stage of building a modern socialist country in an all-round way and marching towards the second centenary goal.It will face a new development pattern in which the domestic and international dual cycles are the mainstay and the domestic and international dual cycles promote each other.Standing at a new historical starting point,the "Proposal of the Central Committee of the Communist Party of China on Formulating the Fourteenth Five-Year Plan for National Economic and Social Development and the Long-term Goals for 2035" puts forward that my country will persist in implementation during the"14th Five-Year Plan" period.Opening to the outside world in a wider scope,in a wider field and at a deeper level,relying on the advantages of my country’s large market to promote international cooperation and achieve mutual benefit and win-win results."The capital market is an important window for China’s opening to the outside world.Expanding the high-level opening of the capital market is not only an inevitable requirement for grasping the new development stage,implementing new development concepts,and building a new development pattern,but also for further deepening the reform of the financial system and enhancing the ability of financial services to serve the real economy.In recent years,the Chinese government has steadily promoted the opening of the capital market,from one-way opening to two-way opening,from partial pipeline opening to full institutional opening,and has achieved a series of fruitful results.Implemented on November 17,2014 Shanghai-Hong Kong Stock Connect;Shenzhen-Hong Kong Stock Connect was launched on December 5,2016;Bond Connect was successfully launched on July 3,2017;A shares were included in the MSCI Emerging Market Index on June 1,2018;September 27,2018,A-shares were gradually included in the FTSE Emerging Markets Index and FTSE Global Index;on September 23,2019,A-share company stocks were included in the S＆P Dow Jones Indices;on June 17,2019,the Shanghai-London Stock Connect was officially implemented;June 2019 On 25 th,the Shanghai Stock Exchange and the Japan Exchange Group jointly launched the China-Japan ETF interoperability;in September2019,the State Administration of Foreign Exchange completely lifted the restrictions on QFII and RQFII.In the future "14th Five-Year Plan" period,China will continue To deepen the opening of the capital market,Shanghai-News Stock,Shanghai-Moto and other capital market interconnection models are expected to be launched.In this context,examining the economic effects of capital market opening on micro-enterprises is an important issue for promoting China’s economic system reform,It is of great significance to help the new pattern of dual-cycle development.As a chronic disease in the field of corporate governance,major shareholder hollowing out has long plagued the healthy development of my country’s capital market.In recent years,there have been endless cases in which major shareholders emptied listed companies.In particular,a series of cases of major shareholder interest embezzlement represented by ST Kangmei（600518）and *ST Kangde（002450）have seriously damaged the majority of investors,especially small and medium-sized companies.The interests of investors have undermined the healthy development of the securities market and aroused widespread attention from government departments and the media.On the basis of strengthening supervision,how to improve the governance of listed companies and improve the quality of listed companies has become an important goal of capital market reform.In view of the fact that my country’s capital market reform has entered a deep water zone,the country hopes to force the reform of the A-share system and improve corporate governance through the opening of the capital market.Therefore,it is of practical significance to examine the impact of capital market opening on the tunneling of major shareholders.Labor is the most important factor in the production process of an enterprise,and labor costs account for approximately two-thirds of the added value of the global economy.Against the background of the current wave of artificial intelligence,machines gradually replacing simple and repetitive labor,and the decline of domestic demographic dividends,the importance of enterprise labor investment efficiency to micro-enterprises’ production efficiency has become increasingly prominent,and its economic significance is worthy of in-depth study.However,domestic research pays more attention to the effectiveness of enterprises in physical investment,and there are relatively few documents on the efficiency of enterprise labor investment.A few documents mostly examine its impact on labor investment efficiency from the perspective of government intervention and legal protection.In recent years,the role of the market in resource allocation and the opening of financial markets to the outside world have received increasing attention from the party and the state.In addition to the government factors and legal factors that have been focused on by existing research,improving the efficiency of corporate labor investment also depends on the opening of financial markets and the innovation of transaction mechanisms.Capital market opening is a key part of my country’s financial market opening,and it is an important and interesting research topic to examine its impact on the efficiency of enterprise labor investment.The total factor productivity of enterprises is an important topic in economics research,and it has received widespread attention from the party and government departments.The 19 th National Congress of the Communist Party of China put forward clear requirements for improving total factor productivity.The institutional environment is an important factor that affects the total factor productivity of enterprises.Previous domestic studies focused on the effect of market reforms,environmental regulations,property rights protection,state-owned enterprise reforms,and industrial policies on the total factor productivity of enterprises.As an important institutional change,capital market opening has received less attention whether it will affect the total factor productivity of enterprises.The core content of capital market opening is to relax or remove restrictions on capital flows,allowing foreign investors to enter and conduct market transactions,thereby introducing foreign capital.Focusing on the participation of foreign investors,existing domestic research mainly examines the impact of capital market opening on stock pricing efficiency and corporate investment and financing decisions.However,research on the impact of corporate total factor productivity is relatively scarce.The influence of factor productivity is necessary.However,most of the previous foreign studies on the economic consequences of capital market opening on micro-enterprises focused on western developed countries.As an emerging and transitioning developing country,our state-owned enterprises have a strong political connection with the government,and the government often interferes in business operations;the legal environment is relatively weak,and the level of investor protection is low;the investor structure needs to be improved,and the pricing efficiency of the capital market Relatively low;this makes my country’s national conditions and Western developed countries have significant differences.Based on the above national conditions,domestic literature has examined the economic consequences of my country’s capital market opening measures（such as cross-listing,QFII,etc.）on micro-enterprises,and the conclusions are not consistent.In addition,in terms of measurement,foreign literature often uses cross-border panel data,which makes it vulnerable to legacy variables such as legal systems,investor protection levels,economic systems,government-enterprise relations,and market efficiency in empirical studies;while domestic literature When examining the impact of cross-listing and QFII on companies,they often face endogenous problems such as self-selection bias,omitted variable bias,and simultaneous bias.Therefore,there is an urgent need for a situation that can not only be representative of policies in practice,but also provide convenience for empirical design in the relevant research to investigate the economic effects of capital market opening on micro-enterprises with China as the background.As an important institutional innovation for capital market opening,the ShanghaiHong Kong stock market transaction interconnection mechanism（hereinafter referred to as the Shanghai-Hong Kong Stock Connect）and the Shenzhen-Hong Kong stock market transaction interconnection mechanism（hereinafter referred to as the Shenzhen-Hong Kong Stock Connect）have a certain policy representativeness and are for research capital.The impact of market opening on the economic effects of microenterprises provides a good opportunity.On the one hand,the Mainland-Hong Kong Connect has brought incremental funds to the A-share market,strengthened the connection between the two markets,improved the investor structure,improved the efficiency of the capital market,and profoundly changed the relatively closed market in the past.In practice,Northbound funds represented by Shanghai Stock Connect and Shenzhen Stock Connect are known as "smart funds",which significantly affects the investment philosophy of market participants and the valuation level of the target company.In terms of policy objectives,as an important part of the reform of the market interconnection mechanism,the Mainland-Hong Kong Connect has also been placed high hopes by government departments and academia,hoping to improve corporate governance and the quality of listed companies,and its smooth operation is also a follow-up The Shanghai-London Stock Connect and other open policies have accumulated valuable experience.On the other hand,the batch implementation of the Mainland-Hong Kong Connect provides a natural experimental context for studying how the opening of the capital market affects the economic effects of micro-enterprises.Different from other countries’ policies and measures to fully open up financial markets,the Mainland-Hong Kong Connect trading system adopts a gradual principle,providing natural samples for the experimental group and control group for this study.Using the double-difference test model to examine the impact of capital market opening on micro-enterprises can effectively alleviate the common endogenous problems of event identification,missing variables,and two-way causality in previous capital market opening studies,and enhance the robustness of research conclusions.Based on this,this article takes the implementation of the Mainland-Hong Kong Connect system in my country’s capital market as a quasi-natural experiment,using data from China’s A-share listed companies,based on information environment theory and foreign investor governance theory,by controlling the dual of company fixed effects and annual fixed effects The differential model explores the specific impact of capital market opening on micro-enterprises from the perspectives of corporate governance,corporate decision-making,and economic consequences.The main findings of the paper are as follows:First of all,from the perspective of corporate governance,the Shanghai-Hong Kong Stock Connect trading system has significantly inhibited the tunneling behavior of major shareholders.This inhibitory effect is more pronounced in companies where major shareholders have pledged equity,have a high degree of financing constraints,and have low competition in the industry market,as well as non-cross-listed companies.Mechanism analysis shows that the Shanghai-Hong Kong Stock Connect system uses the indirect governance mechanism of "voting with their feet" by foreign investors and improves the level of the company’s information environment to restrain major shareholders from hollowing out.An expansive test found that the Shenzhen-Hong Kong Stock Connect trading system also helps restrain the encroachment of the interests of major shareholders;by reducing the level of major shareholders’ hollowing out,the Shanghai-Hong Kong Stock Connect system ultimately improved company performance.In addition,the Shanghai-Hong Kong Stock Connect trading system can also curb corporate violations.Secondly,from the perspective of company decision-making,after the implementation of the Shanghai-Hong Kong Stock Connect trading system,the labor investment efficiency of enterprises has been significantly improved.This conclusion is still stable after a series of tests such as PSM pairing,placebo test,and variable index.Further analysis shows that the effect of Shanghai-Hong Kong Stock Connect on corporate labor investment efficiency is more significant in companies with high financing constraints,high labor intensity,and high human capital intensity.Expansion analysis shows that the Shenzhen-Hong Kong Stock Connect transaction system also helps to improve labor investment efficiency;and with the improvement of labor investment efficiency,Shanghai-Hong Kong Stock Connect ultimately significantly improves the total factor productivity of enterprises.Finally,from the perspective of economic consequences,the Shanghai-Hong Kong Stock Connect trading system has significantly increased the total factor productivity of enterprises.This effect is more significant in companies where major shareholders have pledged equity,have a high degree of financing constraints,and have low market competition in the industry,and non-cross-listed companies.Mechanism analysis shows that the Shanghai-Hong Kong Stock Connect system enhances total factor productivity by improving the efficiency of capital allocation,enhancing the level of innovation,and improving corporate governance.Expansion testing found that Shenzhen-Hong Kong Stock Connect also helps to increase the level of total factor productivity.Based on the above content,the research contribution of this article is reflected in the following three aspects:First,this article not only enriches the research on the opening of domestic capital markets,but also supplements relevant international research on foreign shareholding and capital market opening,and provides unique evidence from the background of the Chinese system.From a research perspective,although some domestic and foreign documents have focused on the special influence of foreign shareholders in the process of capital market opening,most of them use transnational data from western developed countries.This article provides new evidence from China for existing studies.From the perspective of research methods,most of the existing literature is difficult to clarify the causal relationship between foreign shareholding and corporate behavior.The empirical design of this article ingeniously reduces the interference of endogenous issues on the research conclusions,which has certain implications for subsequent similar studies.Reference meaning.Second,this article expands the relevant research on the economic consequences of the Mainland-Hong Kong Connect on micro-enterprises.First of all,the previous literature on the hollowing-out of major shareholders focused more on the restraints brought about by internal and external governance mechanisms such as equity checks and balances,legal environment,board structure,external auditing,and media supervision,but less attention was paid to the Shanghai-Hong Kong Stock Connect.The important capital market transaction system innovation and capital market opening measures have an impact on the tunneling of major shareholders.This article enriches the relevant literature on tunneling of major shareholders.Secondly,the existing literature on the impact of the Shanghai-Hong Kong Stock Connect trading system on corporate investment efficiency mainly focuses on its impact on the efficiency of physical investment.Few studies have explored the relationship between the ShanghaiHong Kong Stock Connect and labor investment efficiency.From the perspective of labor economics,this article expands the study of the Shanghai-Hong Kong Stock Connect on corporate decision-making.Finally,the previous literature on the influencing factors of corporate total factor productivity has focused more on internal and external governance mechanisms such as industrial structure,government control,resource mismatch,human capital,and export trade,but has paid less attention to the Mainland-Hong Kong Connect on corporate total factor productivity.This article helps to understand more deeply how capital market opening affects real economic behavior.Third,this research also has strong practical and policy enlightenment.This article systematically examines the economic effects of the Mainland-Hong Kong Connect on micro-enterprises,and the relevant conclusions help to provide abundant evidence support for the effective implementation of the interconnection mechanism and the subsequent deep opening of the capital market.This research responds to the reform spirit of the central government in recent years on "improving the level of capital market opening and establishing a multi-level capital market system",highlighting the importance of transparency,stability,and predictability of foreign investment policies to the healthy development of my country’s micro-enterprises and even the capital market.It has important enlightenment to the series of reforms proposed by the 19 th National Congress of the Communist Party of China to deepen the opening of the capital market and financial services to the real economy.Furthermore,since 2020,China’s economy has demonstrated strong resilience under the impact of the global epidemic,but it is also facing challenges brought about by the turmoil of the international situation and the transformation of the domestic economy.In the face of this great change unseen in a century,the Fifth Plenary Session of the 19 th CPC Central Committee pointed out that “accelerate the construction of a new development pattern with domestic and international cycles as the main body and mutual promotion of domestic and international cycles”.The capital market,with its flexible and efficient resource allocation method,plays a pivotal role in helping to build a new "dual cycle" pattern.Through the implementation of the capital market interconnection mechanism to force China’s system reforms,improve the economic efficiency of micro-enterprises,and to open up the double-cycle blockage,further promote the capital market "from partial pipeline opening to full institutional opening" and "help domestic The new dualcycle pattern of the international economy" is also of great significance. |
PDF Full Text Request