Capital Mismatch,enterprise Innovation And Total Factor Productivity

As the foundation of the real economy,manufacturing industry plays an important role in China’s economic growth.After 42 years of economic system reform,China has become a "world factory." Chinese manufacturing products have undergone a process from imitation to innovation.The manufacturing structure has been transformed from a low-end to a mid-to high-end.The development speed is fast.However,there are still many problems hidden behind the achievements that have attracted worldwide attention: credit discrimination,irrational allocation of factor markets,low capacity for independent innovation,irrational industrial structure,and so on.These deep-level problems hinder the further improvement of China’s manufacturing productivity and the overall development of the manufacturing industry.Discrimination of ownership in the credit market makes the cost of capital use of non-state-owned enterprises generally higher than the cost of capital use of state-owned enterprises.Increasing costs will reduce corporate profits,which is undoubtedly very detrimental to the survival of enterprises in the fierce market competition.In order to offset the negative impact of increased costs,companies must find ways to increase profits.One of the most effective means is to increase productivity through innovative activities.In addition,credit discrimination leads more funds to state-owned enterprises with lower total factor productivity,which obviously does not conform to the theory of optimal allocation.The misplacement of resources will hinder the improvement of the overall total factor productivity.In view of this,this article combines the current situation of China’s manufacturing industry and uses micro-level data to try to construct an analysis framework of capital mismatch,enterprise innovation and total factor productivity of manufacturing enterprises,and empirically test capital mismatch,enterprise innovation,and the combination of both.Impact of productivity and transmission mechanisms.With a view to making suggestions for enterprises to improve total factor productivity and China’s factor marketization reform,and to provide a basis for promoting the transformation of China’s manufacturing enterprises to innovation-driven enterprises.This paper combines theoretical analysis and empirical analysis to study the impact of capital mismatch and corporate innovation on total factor productivity.Firstly,the basic theory is explained,focusing on the analysis of the impact mechanism and action mechanism of capital mismatch and corporate innovation on total factor productivity,laying a solid foundation for subsequent empirical research.Secondly,construct the total factor productivity measurement at the enterprise level,and compare and analyze the differences between the total factor productivity of different ownership enterprises.Thirdly,empirical research is conducted through panel data of listed Chinese manufacturing companies,and fixed-effect models are used to classify and regression the constructed models,and the correlations between capital mismatch,corporate innovation,and total factor productivity are analyzed based on the regression results.Finally,the intermediary effect test procedure is used to verify whether corporate innovation plays a mediating role in the process of capital mismatch affecting total factor productivity.The research results based on the samples in this article show that,first,among listed manufacturing companies,the degree of capital mismatch of state-owned enterprises is significantly lower than that of non-state-owned enterprises;state-owned enterprises’ R & D investment(enterprise innovation)is higher than that of non-state-owned enterprises R.Second,in the listed manufacturing enterprises,capital mismatch will reduce total factor productivity.State-owned enterprise capital mismatch will reduce total factor productivity more than non-state-owned enterprise capital mismatch will reduce total factor productivity.The effect of overall capital mismatch on the reduction of total factor productivity is more due to the effect of state capital mismatch on the reduction of total factor productivity.Third,in listed manufacturing enterprises,R & D investment(enterprise innovation)will increase the level of total factor productivity;the degree of improvement in total factor productivity of state-owned enterprise R & D investment is less than that of non-state-owned enterprises.The effect of the overall enterprise R & D investment on the improvement of total factor productivity is more derived from the effect of non-state-owned enterprise R & D investment on the improvement of total factor productivity.Fourth,in listed manufacturing enterprises,whether it is the entire manufacturing industry,state-owned enterprises or non-state-owned enterprises,R & D investment has played a part in the intermediary role in the transmission process of capital mismatch to reduce total factor productivity.Fifth,in listed manufacturing companies,capital mismatches will reduce their R & D investment.Compared with non-state-owned enterprises,the mismatch of state-owned enterprise capital has a greater impact on reducing corporate R & D investment.The reduction effect of overall capital mismatches on R & D investment of enterprises is more due to the reduction effect of capital mismatches on R & D investment of enterprises.Sixth,among listed manufacturing enterprises,the total factor productivity of state-owned enterprises is lower than that of non-state-owned enterprises.On this basis,the main policy recommendations of this article are as follows: First,optimize the economic growth mode and change the existing extensive growth mode.The second is to give play to the role of corporate innovation and promote technological progress.The third is to speed up the reform of the allocation of factors to marketization,reduce government intervention,and bring into play the role of market allocation.The fourth is to deepen the reform of state-owned enterprises,develop the private economy,and improve the overall productivity and vitality of the manufacturing industry.