External Environment,Internal Control And Total Factor Productivity Of Enterprises

The economic development of our country is turning to a high-quality development stage.On the one hand,it is caused by the strengthening of resource and environmental constraints faced by the economy and society.On the other hand,the reason is that enterprises generally have low productivity and no competitive advantage.Therefore,It is the key and premise of high quality economic development that the enterprise performance growth changes from the extensive type driven by increasing factor input to the intensive way of increasing Total Factor Productivity.The special background of the transition period determines the complexity and dynamics of the external environment.The internal system of enterprises is also changing.According to the theory of new institutional economics and system theory,it is shown that the external environment and internal system of the enterprise will jointly affect the business activities of enterprises.In view of the importance of government intervention and media supervision to the development of enterprises,the role of digital finance as a new financial form in promoting the production and operation of enterprises,combined with the existing research with the impact of these environmental factors on enterprises’ Total Tactor Productivity is still not deep enough,and the external environment such as the level of rule of law and the degree of marketization is relatively rich,this paper selects the fiscal and taxation policies,media supervision and digital finance perspectives in the external system of enterprises to examine its impact on TFP.In view of the relative imperfection of the market and legal system in China’s transition period,the government allocates resources instead of the market.However,the effect of fiscal and tax policy has always been debated.Can it promote the improvement of enterprises’ productivity? In addition,media has always been called the "fourth power" by Western scholars.As an system outside the law,the governance role and interest tendency coexist.How does it affect enterprises’ productivity in China’s economic practice? Digital finance takes technology as carrier and finance as essence.As a reform of the external financial system,it brings resource support and information advantage to enterprises.However,the initial development of digital finance is accompanied by financial risks.Can it promote the productivity of enterprises? How do these external factors affect enterprises’ productivity?Similarly,the goal of establishing an internal control system is to improve the level of corporate governance.But in many enterprises,it is regarded as "a piece of paper" on the desktop.Can it have the effect of internal governance,so as to improve the productivity of enterprises? How to achieve external influence? Finally,when the external environment affects the business decision-making of the enterprise,is the effect weakened or strengthened by the risk monitoring function or activity control mechanism of the internal control system? The inadequacy of existing research and the importance of enterprises’ productivity make it necessary and critical to explore these issues.Specifically,We take the listed manufacturing companies as the research object.This article starts with the internal system and external environmental factors faced by the enterprise,and adopts the combination of theoretical analysis and empirical test to verify the impact of external environment and internal control on enterprises’ productivity.This paper is roughly divided into three main lines: the first is to prove the influence mechanism of internal control on enterprises’ productivity;the second is to explore the influence channels of government resource allocation,media supervision and digital finance on enterprises’ productivity;the third is to analyze the cross-effect of external environment and internal control from the perspective of internal control.The main contents of this article include: Firstly,analyze the heterogeneity of the influence of internal control,and then test the reliability by means of instrumental variable method;Verify the influence mechanism of fiscal and tax policy on firms’ productivity,analyze the cross-influence of fiscal and tax policy and internal control,and test the difference of fiscal and tax policy effect in different situations;Secondly,discuss the intermediary of the influence of media supervision on enterprises’ productivity,analyze the cross-effect of media supervision and internal control,and then verifie the role heterogeneity of media supervision;Thirdly,explore the path mechanism of digital finance on firm’ productivity,analyze the cross-impact of digital finance and internal control,and test the differences of digital finance in different situations.The main conclusions of this paper are as follows: First,internal control improves the Total Factor Productivity of enterprises by promoting R&D investment and inhibiting insufficient investment.And the role of internal control is more significant in non-state-owned,large board of directors or high market-oriented enterprises.Second,fiscal and tax policies improve enterprises’ productivity by promoting R&D investment.The interaction term of fiscal subsidies and internal control has a negative impact on enterprises’ productivity.That is,the higher the level of internal control,the weaker the promotion effect of fiscal subsidies.While the interaction term of tax incentives and internal control has a positive impact on enterprises’ productivity.That is,the higher the level of internal control,the more significant the effect of tax incentives.The effects of the two policies showed heterogeneity in different situations.Third,media supervision promotes enterprises’ productivity progress through increasing human capital input and promoting scale effect.The interaction between media supervision and internal control has a negative impact on enterprises’ productivity.That is,the higher the level of internal control,the weaker the promotion effect of media supervision on enterprises’ productivity.The effect of media supervision is more significant in large scale,separation of two jobs or low marketization level.Fourth,digital finance enhances enterprises’ productivity by promoting R&D investment,improving human capital investment and optimizing the efficiency of resource allocation.And the interaction between digital finance and internal control has a positive impact on enterprises’ productivity.That is,the higher the level of internal control,the more obvious the promotion effect of digital finance on enterprises’ productivity.Digital finance plays a stronger role in the case of small scale,high proportion of the largest shareholder or high level of marketization.The possible innovations of this paper are as follows:(1)Construct the framework of the impact of external environment and internal control on enterprises’ productivity,and further analyze the cross-impact of external environment and internal control on enterprises’ productivity.It helps to broaden the relevant research on productivity.The existing research pays less attention to the comprehensive effect of external environment and internal control on enterprises’ productivity.From the perspective of internal control,this paper demonstrates the impact on the effects of fiscal and tax policy,media supervision and digital finance.(2)Clarify the influence and path of fiscal and tax policy,media supervision and digital finance on enterprises’ productivity.The conclusion of the study helps to give better play to the role of the external environment in improving the productivity of enterprises in the transitional period.Due to the controversy over the impact of fiscal and tax policies on productivity,there is still a lack of empirical test on the impact path of both policies in the same sample.However,the influence of media supervision on enterprises’ productivity is not thoroughly studied at present.And few theoretical and empirical analyses on specific mechanism of action.Most of the analysis on digital finance and productivity is at the macro level,while there are few studies on micro enterprises with inconsistent conclusions,and the role path is also lack of comprehensive and detailed discussion.And the research on external environment of enterprises is supplemented.(3)Reveal the influence and path of internal control on enterprises’ productivity.And helps to enrich the related research in the field of internal control.There are few studies on the influence mechanism of internal control on enterprises’ productivity.The research conclusions provide empirical basis for enterprises to find ways to promote productivity from the perspective of internal system.