Research About The Adjustment Of Government Management Level And Enterprise Value

Since the reform and opening up,China has achieved great success in its economic development.It has established a comprehensive system of material production,greatly improved people's living standards and integrated itself into the world economic system in an all-round way.As an important micro-economic,enterprises have made an indelible contribution to this,the rapid development of the enterprises is an important source of the Chinese miracle.However,the world today is undergoing extensive and profound changes,and China is also in a critical period of transformation.With the increasingly fierce global competition,China has entered a historical stage where it is necessary to change its economic development mode and adjust its economic structure in order to achieve sustainable development.In order to cope with this new change,we urgently need to give priority to improving the vitality and efficiency of enterprises.However,under the current policies,enterprises,especially small and medium-sized enterprises in counties,are faced with too many development problems,such as financing difficulties and large tax burden.How to solve these problems and help small and medium-sized enterprises in counties develop is a huge test for the Chinese government.In recent years,various regions in China have started to implement the reform of "Province-managing-county Reform",with the purpose of stimulating the vitality of county economic development and further accelerating the pace of county economic development.There are two main reasons for the implementation of the reform: first,under the system of "City-managing-county ",there is an extra link between the province and the county,which has seriously affected the efficiency of administrative management and even the quality of information transmission.Second,the competition between cities and counties seriously affects the economic development of counties.From the perspective of economy,due to the small control of urban economy,it is not enough to help the development of county.Some smaller cities have little economic strength,in this case,the city cares more about the development of own,the more resources,put more elements and energy to the development of urban economy.And the small and medium-sized enterprises are struggling.There are lots of research in existing literature for "Province-managingcounty Reform",most literature findings support " Province-managing-county Reform " has a positive influence to the development of county economy,however,few literature research can answer how would the " Province-managing-county Reform " influence the county's economics,and what would happened to the enterprises.Therefore,this paper takes the counties who accept "Provincemanaging-county Reform" and the companies in the county as the research object,and takes 2006-2015 as the period to construct A sample to study whether "Provincemanaging-county Reform" will affect county-level enterprises and the transmission mechanism of this influence.First of all,this paper reviews the domestic and foreign literatures on the reform of "Province-managing-county Reform" and the relationship between the government and enterprises.Secondly,sorted out the theoretical basis of the possible impact of the reform on enterprises.In this paper,in view of the reform of "Province-managing-county Reform" can be regarded as a quasi-natural experiment,the DID method is used to test whether "Provincemanaging-county Reform" will have an impact on enterprises,and to explore its transmission mechanism and to test the robustness of the empirical results with placebo.Finally,policy Suggestions are proposed based on theoretical and empirical studies.The results of this paper show that the reform of "Province-managing-county Reform" will have a positive impact on enterprise's value.By means of improving tax incentives and reducing government apportionment,enterprises are stimulated to increase their investment in research and development,improve their total factor productivity,and ultimately increase the value of enterprises.