Study On The Impact Of Financial Resource Misallocation On Firm Performance Under Institutional Environment

As an important aspect of supply-side structural reform,the core of financial supply-side reform is to realize the optimal allocation of financial resources and enhance the level of financial services to the real economy.However,there are still a large number of inefficient financial supply phenomena in China.The financial demands of some efficient non-state-owned enterprises are not met,while some inefficient state-owned enterprises have excess funds,therefore financial misallocation is significant,which will not only reduce the utilization of financial resources,affect firm performance,but also restrict the high-quality development of China's overall economy.At present,China is committed to creating a good institutional environment for enterprises,so it is of great significance to explore the regulatory role of institutional environment in the relationship between financial resource misallocation and firm performance.This paper theoretically analyzes the impact mechanism of how financial resource misallocation and institutional environment impact firm performance.F financial resource misallocation has a negative impact on firm performance by affecting corporate financing activities,production and operation activities,R&D innovation activities and investment activities.The institutional environment affects the relationship between financial resource misallocation and firm performance through five aspects of total marketization,namely,the relationshp between government and market,the degree of marketization of financial industry,the legal system environment,the development of non-state-owned economy,and the degree of the product market development.In addition,ownership difference affects the relationship between financial resource misallocation and firm performance and the regulatory role of the institutional environment.In the empirical aspect,using the 7972 data of China's Shanghai and Shenzhen A-share non-financial insurance listed companies in 2009-2014,the multi-regression model is constructed with the total return on assets as the explanatory variable and the degree of financial misallocation as explanatory variables,studying the impact of financial resource misallocation on firm performance,distinguishing between ownership differences between state-owned enterprises and non-state-owned enterprises.On this basis,the financial resource misallocation and institutional environment interaction items are added to study the adjustment effect of financial resource misallocation and firm performance under different ownership systems.The research results show that in China's listed companies,financial resources misallocation has a significant negative impact on firm performance,The higher the degree of financial resources misallocation of listed companies,the lower the level of firm performance.The difference of ownership affects the relationship between financial resource misallocation and firm performance,compared with state-owned listed companies,the negative impact of financial resources misallocation on the performance of non-state-owned listed companies is greater.In addition,a good institutional envirornment can effectively reduce the negative impact of financial resources misallocation on the performance of state-owned listed companies,and the difference in ownership affects the regulatory role of the institutional environment.On the basis of the research results,relevant policy recommendations are proposed from the aspects of improving financial resource misallocation and improving the institutional environment.