The Analysis On The Influence From Financial Resource Misallocation To Corporate Performance

Since the Chinese economic reform, the financial resource misallocation has been a critical problem in Chinese economy. The existence of financial resource misallocation makes the financial bubbles, lower the efficiency of resource allocation and rate of capital return and influence the corporate’s capital structure. It also affects the economy growth and economic structural adjustment seriously. So, the financial resource misallocation has been a topical issue in academically and socially.Thou many scholars have researched this problem, their studying are mainly on the macro and qualitatively on the micro. The quantitative study on the micro is not enough. This paper is based on the theory of "Law and Finance". It put La Porta’s international comparison analysis framework into Chinese situation. We use the data of Chinese listed companies from 2005 to 2013 and totally, we get 12818 samples. We analyze the situation of financial resource misallocation in China and its different appearance in different areas, industries and ownership. Meanwhile, we use the OLS model to study the relationship between the financial resource misallocation and corporate performance. We also study how this relationship differs in different areas, industries and ownership.Our conclusions are as follows:(1) the situations of financial resource misallocation in different areas, industries and ownership are different. The financial resource is usually surplus in east areas, regulated industries and state-owned corporates, while it is usually insufficient in middle and west areas, unregulated industries and non-state-owned corporates; (2) generally in the whole country, the corporate performance has the negative relationship with the financial resource misallocation, but this relationship differs in different areas, industries and ownership; (3) in the east area, the corporate performance has the negative relationship with the financial resource misallocation, but in the middle and west area, they don’t have significant relationship. The difference in areas has ability to affect the relationship between them; (4) in the unregulated industries, the corporate performance has the negative relationship with the financial resource misallocation, but in the regulated industries, they don’t have significant relationship. The difference in industries has ability to affect the relationship between them; (5) in the state-owned corporates, the corporate performance has the negative relationship with the financial resource misallocation, but in non-state-owned corporates, they don’t have significant relationship. The difference in ownership has ability to affect the relationship between them.