Research Of Capital Mismatch Influences’ On The Return On Capital To Enterprises

Our economic growth has made remarkable achievements since we established the socialist market economy system in1992.But at the same time, due to the special national conditions of our country and the institutional environment, it has also exposed many problems in the long process. At present, our economic growth has entered a slide-down area, economic reform has also entered the hardtime and deep water area, the optimization of economic structure adjustment and transformation and the upgrading of industrial structure is imperative,problem such as resource mismatch is more apparent. In fact, resources mismatch is a important factor that restricts our economic growth and output efficiency, therefore, studies on resource allocation is a inevitable requirement of having a deep understanding of the development process and searching for the economic development momentum of the next stage. It should be pointed out that, although the mismatch condition are improved gradually along with the reform of our resources,there is still a room big enough to improve. Many scholars’research shows that the resource allocation efficiency is very low between our country’s enterprises, inefficient enterprises still have a large number of resources.if we transfer the resources from inefficient enterprises to the enterprises and industries with high efficiency, then the output capacity and economic growth in China will get a boost.For a long time, large state-owned enterprises with low production efficiency has absorbed a lot of loans from the banks while small and medium-sized enterprises who has made big contributions to economic growth with its outstanding production are faced with the plight of financing difficulties. In addition, our country is in the midst of a downturn phase of a new round of economic cycle now.Researches of capital mismatch of the manufacturing industry in economic downward interval also have a very important reference significance. In view of this, in this paper, starting from Keynes’s investment marginal efficiency, taking the economic cycle and the enterprise scale into account.capital mismatch problem between the manufacturing enterprises were analyzed based on the fixed effect of the panel model, trying to answer the following two questions:First, what’s the relationship between enterprise’s capital mismatch and the return on its capital. Second, if the relationship exists, stage of economic cycle and the enterprises scale whether and how affects the enterprise’s capital mismatch, thus enterprises’marginal capital productivity.In this paper, starting from the perspective of capital mismatch, with the use of panel data from1992to2013of Chinese listed companies of manufacturing industry,we studied the relationship between the marginal productivity of capital,and the enterprise scale’s and the economic cycle’s effects on it. Based on the model of fixed effect,our empirical results show that:First, there is a positive correlativity between enterprise’s capital mismatch and the return on its capital;Second, compared with large enterprises, small enterprises face higher costs of using the capital, but it has a higher return on capital;Third, the overall enterprises during the economic downturn are faced with more severe capital mismatch, but large enterprises’return on its capital is higher than average level during the economic downturn.The purpose of this paper is to study how capital mismatch is affected by the economic cycle and the enterprise scale and what effect on the return on capital, and provides the concrete policy suggestions. It is divided into the following six parts: the first part is the introduction, we elaborated the background and origin of the thesis of this research, analysed the purpose and significance of research and sumed up some representative research about capital mismatch. On this basis, we further summarized the research framework and research methods, and finally points out the innovation and deficiency of the research; The second part mainly expounds the definition, characteristics and status quo of capital mismatch, reasons and methods, and then we created a new theoretical assumptions based on the concept of the curve of Marginal Efficiency of Capital; The third part is mainly the construction of regression model, the selection of data and index shows; The fourth part is an empirical analysis of capital mismatch, enterprise scale, the economic cycle and capital returns; The fifth part is conclusion and suggestions.In this paper, the main innovation is that, unlike most of the scholars who study the phenomenon of capital mismatch from the perspective of corporate ownership, this article construct a new theoretical framework based on the definition of the capital marginal efficiency from a new perspective of enterprise scale and the economic cycle, and then makes new analyses on mismatch phenomenon, gets a new conclusion. The shortcomings of this article is limited to data acquisition without considering unlisted companies, and unlisted enterprises in fact accounted for a big proportion, small and medium-sized enterprises also accounted for a large proportion unlisted enterprises, the lack of sample may lower the statistical result of significant.