The Impact Of Financial Resource Misallocation On Enterprise Innovation

Since the reform and opening up,Chinese economy has been growing rapidly,and Chinese financial sector has also achieved rapid development.Exactly speaking,China has a large financial market,However,the quality of financial resources allocation is not satisfactory.Financial misallocation has long been an important feature of Chinese market economy.Although Chinese financial market reform in recent years has made enormous progress,the degree of capital marketization is not high.And it has become an important reason to hinder the optimization and upgrading of economic structure.In fact,The financial misallocation between enterprises is essentially a serious difference in the cost of financing.A large number of scholars have discussed the allocation of financial resources,and even studied the misallocation of financial resources,but these researches either focus on the macro point of view,or on a certain aspect of the micro-angle.Based on the theory of endogenous growth,by use of the data of enterprises above designated size in China from 2000 to 2009,this paper analyzes the impact of financial resource misallocation on enterprise innovation.According to the research status quo of financial resource misallocation and enterprise innovation,we conducted sub-sample study in light of different regions,different industries and different ownership.The main conclusions are as followings: Firstly,From the overall situation,the misallocation of financial resources has obvious inhibitory effect on the innovation of the enterprise.With the increase of the points,the degree of financial resource misallocation has gradually deepened the impact on the enterprise innovation.Secondly,From the regional situation,due to the rich financial resources in the eastern region,the allocation of financial resources is more efficient,so the degree of financial misallocation is relatively light.On the basis of the different areas,different types of enterprises and different industries,The impact of enterprise innovation is smaller than that of the central and western regions.Therefore,the misallocation of financial resources in the eastern region has no significant effect on the innovation of the enterprise.While in central and western regions,it shows the opposite conclusion.Thirdly,from the industry situation,financial resources misallocation on the impact of enterprise innovation also appeared differently.There are industry differences in financial resource misallocation.Last but not the least,from the ownership situation,because the state-owned enterprises has a greater advantage in attaining financial resources,it does notrequire innovation to get a higher corporate profits.For smaller and medium enterprises,innovation can be described as a kind of interest,although the financial resources are less.In order to achieve the maximization of corporate profits,they tend to innovate.There are ownership differences in financial resource misallocation.On the basis of those research,the relevant departments should pay attention to the misallocation of financial resources and its possible inhibition of entrepreneurial innovation.Therefore,the Government can not implement the "one size fits all" approach.It should formulate corresponding policies according to the nature of different industries,the enterprises with different state-owned properties and the special circumstances of different regions.At the same time,we should spare no efforts in solving problems of "financing difficulty,financing expensive" of small and medium-sized enterprises,and accelerating the development of inclusive finance.Also,we should focus on solving the problems of resource misallocation and the inefficient use of resources in the central and western regions.By way of diversifying financial system,improving the degree of financial market competition,optimizing the allocation of financial resources,it can provide strong support for enterprise innovation.