Financial Resource Mismatch,Financing Costs And Corporate Performance

As the most active and important production factor,financial resources play an important role in economic development.Reasonable allocation of financial resources is the basis of real economic development.Effective resource allocation guides financial resources from low marginal productivity to high,until Pareto optimal state is achieved.Financial resource mismatch is the deviation from this kind of financial resource allocation process.status.At present,there is a serious mismatch of financial resources in China.The most prominent manifestation is the mismatch between different ownerships.China's financial structure China's banks dominate,which makes it the main body of credit resource allocation,coupled with the government's excessive administrative intervention,resulting in a situation of non-market financial resource allocation.More financial resources have been allocated to state-owned enterprises,and some state-owned enterprises have invested more rashly.Over-capacity and non-efficient investment have appeared,which not only caused a serious waste of financial resources,but also caused the performance of state-owned enterprises to decline instead of rising(Sun Guomao,Hu Ruyin,2018).Compared with state-owned enterprises,although private enterprises are difficult to obtain loans from formal financial institutions such as commercial banks,even if they obtain loans,the loan interest rate is higher than that of state-owned enterprises.Private enterprises are faced with difficulties in financing and expensive financing because of the poor availability of financial resources.This has caused a series of problems,such as a decline in the real economy 's return rate,a decline in private investment growth,the disengagement of funds and the accumulation of financial risks.(Yuan Zengting et al.,2010)This article defines the concepts of financial resource mismatch,corporate performance,and financing costs.It is based on the theories of MM,credit rationing,financial suppression,information asymmetry,and signal transmission.At the same time,it uses literature reviews,a combination of theory and empirical methods,etc.An analysis of the adverse effects caused by mismatched financial resources on corporate performance,and an empirical test of the intermediary effect of financing costs.This paper believes that there is indeed a mismatch of financial resources in China.There is a significant negative correlation between the mismatch of financial resources and corporate performance.At the same time,the intermediary effect of financing costs between the two is significant.That is,the mismatch of financial resources will increase the financing costs of enterprises.Seriously hinder the improvement of corporate performance.The sample is further divided into state-owned enterprises and private enterprises.Empirical research results show that:compared with state-owned listed companies,the mismatch of financial resources has a greater impact on the performance of private enterprises,and the intermediary effect of financing costs is more significant.Based on the above research conclusions,it is proposed to clarify the functional boundaries of the government and enterprises and reduce government administrative intervention;state-owned enterprises continue to improve production efficiency based on the principle of efficiency;establish multi-level capital markets and expand financing channels;adjust the banking structure and accelerate the financial system Policy recommendations such as supply-side reforms.