Combination of Entity Enterprise and Financial Institution: Financial Constraints,Policies to Cater or Market Competition? Based on the Empirical Research of Different Property Rights Perspective
Abstract:
Based on the research object of the entity enterprises which participate in private financial institutions from 2005 to 2014, this paper studies the motivation and economic consequences of the entity enterprise to participate in financial institutions. According to the property attribution, the empirical results show that state-owned entity enterprises are inclined by government intervention to participate in private financial institutions; on the contrary, non-state-owned entity enterprises are inclined by market competition pressure and financial constraints. The economic consequences revealed that the participation in private financial institutions obviously improved the performance of non-state-owned entity enterprises and reduced their financial constraints but led to a great decrease of the performance and total factor productivity of state-owned entity enterprises. Further study found that from the participation in private financial institutions, state-owned entity enterprises got more subsidies while non-state-owned entity enterprises got more bank loans. The results above show that the combination of state-owned enterprises between industry and finance is caused by government intervention while that of non-state-owned enterprises is their free choice driven by market competition pressure and financial constraints.
黎文靖, 李茫茫. “实体+金融”:融资约束、政策迎合还是市场竞争?——基于不同产权性质视角的经验研究[J]. 金融研究, 2017, 446(8): 100-116.
LI Wenjing, LI Mangmang. Combination of Entity Enterprise and Financial Institution: Financial Constraints,Policies to Cater or Market Competition? Based on the Empirical Research of Different Property Rights Perspective. Journal of Financial Research, 2017, 446(8): 100-116.
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