A Study On The Impact Of Financing Constraints On Efficiency Losses Of Capital Allocation In China’s Manufacturing Enterprises

With the Chinese economy grows from high speed to high quality growth,extensive economic growth mode is not suitable for China’s current development requirements.However,the improvement of innovation capacity can not significantly accelerate economic growth in the short term.Finding a new engine of economic growth needs to be done fast.The existing literature studies show that resource mismatches seriously in China,and optimizing resource allocation efficiency has become a new growth mode in China.The loss of capital allocation efficiency is an important part of Chinese resource mismatch.Studying its influencing factors can effectively control the loss of capital allocation efficiency and promote Chinese economic growth.This paper first constructs the theoretical framework of capital allocation efficiency loss,and analyzes the theoretical mechanism which affects the efficiency of capital allocation.Secondly,based on the theoretical framework of capital allocation efficiency loss,the advanced semi-parametric method is used to estimate the efficiency of capital allocation in manufacturing.The results show that there is a large loss of capital allocation efficiency in the manufacturing industry,which is increasing year by year.From the perspective of the quintile industry,the loss of capital allocation efficiency of capital allocation in the industry that is close to complete competition is greater,and that of the industry which near the monopoly is smaller.Judging from the nature of the enterprise,the state-owned enterprises have the least loss of capital allocation efficiency and the greatest losses to foreign companies.Government subsidies may have led to this phenomenon.Finally,panel data GMM estimation and empirical analysis were used.Further the impact of financing constraints on capital allocation efficiency losses was analyzed.And quintile industry,enterprise ownership,and different financial development levels were controlled.The stability of the impact of financing constraints on capital allocation efficiency losses was examined.Through the above theoretical research and empirical analysis,this paper finds are as follows.Firstly,from the perspective of the industry to which the enterprise belongs,the closer to a perfectly competitive industry it is,the greater the degree of impact of financing constraints on the efficiency of capital allocation losses.Secondly,from the perspective of enterprise ownership,the degree of influence of private enterprises financing constraints on capital allocation efficiency loss is significantly greater than that of state-owned enterprises.Reducing the financing constraints of private enterprises can better reduce the impact of capital configuration efficiency loss.Thirdly,from the perspective of financial development level,regional financing constraints with moderate level of financial development have the least impact on capital allocation efficiency loss.As a whole,the financing constraints of companies have a significant impact on the loss of capital allocation efficiency.Relieving the company’s internal financing constraints and external financing constraints can effectively reduce loss of capital allocation efficiency.And the degree of influence of external financing constraints on capital allocation efficiency losses is much greater than that of internal financing constraints.According to the research results,this article puts forward some suggestions for reducing the loss of capital allocation efficiency,which is of great significance for China to effectively control the loss of capital allocation efficiency and promote economic transformation.