The Relationship Between The Change Of Total Factor Productivity And Financing Constraints Of The Manufacturing Enterprises In The GEM Market

Nowadays enterprises are facing a dilemma of transformation. The way to obtain profits should be increasing productivity and science rather than just increasing large numbers of inputs. Productivity refers to the ability of transforming inputs to outputs. Higher productivity shows that the ability of utilizing resources is stronger. The change of total factor productivity is an important indicator of this ability.Meanwhile, the productivity of the enterprise is influenced by various factors. Financing constraints is one of the external factors which most enterprises will face. Financing constraints means that external financing cost is greater than the internal financing cost because of the imperfect capital market. Small and medium enterprises are greatly facing the serious financing constraints. In order to solve the financing problem of SMEs, the GEM market came into being. There have been more than 400 companies to issue shares and to raise funds in the GEM market since 2009. Among the enterprises, manufacturing enterprises accounted for a large proportion.Therefore, the paper selects indicators and data from 132 gem manufacturing enterprises between 2010 and 2013 and tests the relationship between the change of total factor productivity and the financial constraints.This paper is divided into three parts to test the relationship between the change of total factor productivity and the financing constraints. The first part adopts the Malmquist-DEA method to measure the change of TFP of 132 manufacturing enterprises, including five kinds of efficiency change-EC, TC,PEC, SEC,TFPC. The second part uses the stochastic frontier analysis (SFA) method to measure the degree of financing constraints of these enterprises. It uses the difference between the actual level of investment and the optimal investment level of enterprises to indicate the degree of financing constraints. Results show that financing constraints increased year by year. The third part uses the panel data model, five efficiency change as the explained variable, financing constraints degree as explanatory variables, control variables and dummy variables, through the model specification test for the individual random effects model. Results show that the relationship of the efficiency change (EC) and financing constraints is positive. The relationship of total factor productivity (TFPC) and financing constraints is also positive. In conclusion, financing constraints improves efficiency and total factor productivity.Finally, according to the results of empirical research conclusion, the paper put forward some proposals.