The Economic Consequences Of The Soft Budget Constraint

Since Kornai first put forward the soft budget constrainteconomic concept in 1980, many scholars in spare no effort to seek and support the root crux of the soft budget constraint, and from "endogenous" and "exogenous" two reasons perspective which then will be the economic consequences.The focus of this article is in view of the nature of the soft budget constraint causes right after to empirical soft budget constraint is indeed lead to the economic consequences. Soft budget constraint problems widely exist in our country’s enterprises, with the actual situation of our country, the state-owned enterprises of the existence of the more obvious, the possibility of loss of damage and strength more, this article through to the soft budget constraint problems in-depth analysis, through the empirical results find economic environment in our country the economic consequences of soft budget constraint, increase of soft budget constraint role in the economic environment more in-depth understanding, not only can be a reference for enterprises to strengthen their own adjustment, in the long run, is also conducive to the high speed development of economy in our country, is advantageous to the market economy of our country has entered a more healthy more rational development track.Based on the domestic economic market environment in our country as the background, in China’s a-share manufacturing listed companies as research samples, using the 2008-2012 A shares in Shanghai and Shenzhen two city manufacturing main board listed company financial data as sample data, studies the economic consequences of the soft budget constraint.The empirical part of this article from the analysis of structure indexes and the soft budget constraint the economic consequences of two parts, the soft budget constraint structure index of soft budget constraint is one of the important previous preparation analysis economic consequences.First measure of soft budget constraint structure, get the soft budget constraint index, after its application as a research tool to soft budget constraints caused by the excessive investment, damaged the economic consequences of empirical enterprise value. Results showed that the soft budget constraint to the enterprise investment and enterprise value and performance are adverse economic consequences.The paper constructs the soft budget constraint index effect is good, and in this paper, the soft budget constraints caused by the excessive investment, damaged the economic consequences of the enterprise value of the empirical results consistent with theoretical results.