A Study On Capital Returns Of Different Ownership Enterprises

China is in the transformation of the mode of economic development, many structural problems are due to the misallocation of resources. The structural reform of supply-side is to correct resources misallocation and improve capital return. China’s the current financial system has obvious "ownership preference". Financial discrimination is very obvious. This paper mainly studies how financial misallocation affects the capital return of different ownership enterprises. On the basis of the relevant literature and the classical theory model, we estimated the capital return and financial misallocation of heterogeneity enterprises, and made a quantitative study on the relationship between the two.The main conclusions are as follows:(1) the capital return of private enterprises is always higher than that of state-owned enterprises in 1999-2014, but the gap between the two is narrowing. (2) The financial misallocation always exists, and there is a deepening trend. On the one hand, financial institutions give differentiated treatment in credit, on the other hand, commercial credit financing flows into state-owned enterprises from private enterprises. (3) For private enterprises, the higher the financial misallocation, the higher the capital returns. Under equilibrium conditions, the private enterprises need to create a higher capital return to offset the negative effects. For the state-owned enterprises, contrary is true. (4) After 2008, the difference of ownership in the stock market relatively weakened; financial misallocation has decreased its influence on capital returns of heterogeneity enterprises.The significance of this paper is to better understand the principle of diminishing marginal returns of capital and to reveal the efficiency of capital investment, to judge whether the capital investment is reasonable, and improve the development of private economy. The innovation of this paper is that we studied the heterogeneity enterprise problems by using micro data, and found that the mechanism of financial misallocation is different for heterogeneity enterprises. Finally, based on the research of this paper, we put forward some suggestions on improving the capital return and reducing the financial misallocation.