Research On The Impact Of Financial Liberalization On The Investment Efficiency Of Listed Companies

After the reform and opening up,Chinese financial liberalization has been continuously promoted,the market opening has been expanding,Chinese economy has developed rapidly,and capital use efficiency has been greatly improved.Research on the efficiency of financial liberalization on corporate investment has traditionally been studied by empirical methods,but the micro-mechanism is rarely involved.Therefore,this paper takes subjective value theory as the premise,and focuses on the economic principles of the impact of financial liberalization on corporate investment efficiency,and provides a theoretical basis for promoting financial liberalization reform.Subjective value theory holds that different individuals give different values to the same item,and free trade increases the satisfaction of both parties.The emergence of currency not only reduces transaction costs,but also provides a tool for entrepreneurs to calculate economics.Without money,entrepreneurs cannot know which investment is more reasonable.Production is for consumption,consumer preferences lead entrepreneurs' investment activities,and profit is the only indicator for evaluating the efficiency of corporate investment.In order to improve efficiency,enterprises carry out roundabout production.Capital is the general term for all goods that produce consumer goods,and is the result of entrepreneurs' evaluation based on consumers' preferences.Capital is heterogeneous,and the heterogeneity of capital determines the structural characteristics of social capital.Financial liberalization has made entrepreneurs more flexible in reshaping capital structures to better match consumer preferences.Interest rate marketization can not only ease the financing constraints of enterprises,but also make the currency interest rate more accurately reflect the original interest rate of consumers,and provide a more accurate reference signal for corporate investment.This paper selects the most significant time period in Chinese financial liberalization process and constructs the financial liberalization index of China from 1996 to 2010.Financial liberalization is divided into seven indicators: interest rate marketization,foreign exchange market liberalization,financial industry entry barriers,credit control relaxation,bank property rights diversification,securities marketization reform,and freedom of business operations.The process assigns seven indicators separately,and finally uses the arithmetic average method to obtain Chinese financial liberalization index.This paper uses the rate of return on capital to measure the investment efficiency of enterprises to construct an empirical model.Firstly,it analyzes the impact of financial liberalization on the efficiency of corporate investment,and then focuses on the real estate industry,wholesale and retail industry and manufacturing industry.The regression results show that the process of financial liberalization has a significant role in promoting the return on capital of listed companies in China.With the improvement of Chinese financial liberalization index,the return on capital of listed companies in China has increased significantly.Finally,using the ROE to measure the investment efficiency of enterprises to conduct a robust test,the same conclusion was obtained.