Research On The Influence Of Local Government Debt On Non-state-owned Enterprise Investments

Enterprise is the pillar stone of the a region’s development and a country,and its investment plan and direction are an important part of enterprise operation and management.The government has introduced relevant policies to promote the development of real enterprises under the COVID-19 pandemic,but non-state-owned enterprises still face the "glass door" problem.As the market main body,the scale and quality of local government debt affect the behavior of local enterprises,and has become the hot spot of academicians’ instructive research.Over the years,Facing the pressure of macro-micro economic regulation in the development of the economy.As the key variable of micro-economic development,it is of great significance to explore the macro-influencing factors behind enterprise investment and help non-state-owned enterprises to seek new investment driving force.Therefore,starting from local government debt,this paper studies and analyzes the impact on financing of non-state-owned enterprises,and further analyzes the impact on investment and investment efficiency of non-state-owned firms.Depend on existing dissertations,this thesis analyzed theory and empirical research and starting from micro and macro aspects,to think deeply the influence ways of local government debt and investment of non-state firms in China.First,the thesis has a brief introduction of research object,and describes the status quo local debt from the size and riskiness.Secondly,analysis of influence path which large-scale borrowing by local governments to investment of non-state-owned firms in China’s unique economic surroundings.This thesis elects panel data for analysis which is A-share non-state-owned firms from 2009 to 2019,in order to empirically analyzes the investment effect and intermediary effect mechanism of provincial(city)level local debt and its structure on non-state-owned firms,further analysis the firms investment efficiency,and studies its differential impact on non-state-owned enterprises of different areas.The results of theoretical and empirical research show that the expansion of local government debt inhibits the enhance of the investment level of non-state firms in the region,and has different effects under different local debt structures.The mediating effect model is used to analyze the mechanism of local debt impact on the investment of non-state-owned enterprises by using corporate credit availability and corporate financing constraints.Finally,according to the research conclusions,this paper puts forward countermeasures and suggestions from macro and micro levels.Firstly,the government should improve its efficiency and change its role to become more of a regulator in financing rather than a participants.At the same time,we will do a good job in debt management and be alert to financial risks and solvency risks brought about by large-scale hidden debts.Secondly,the firms should improve the internal governance system of enterprises and raise their own investment and financing level.