Research On Influencing Factors Of Private Enterprise Investment

The report of the 19th National Congress of the Communist Party of China pointed out that "China’s economic development stage has changed from high-speed growth to high-quality growth.We must adhere to the development principle of quality first and efficiency first,adhere to the supply-side structural reform as the main line and focus on high-quality development,and actively promote the quality,efficiency and power reform."Steady growth is a basic prerequisite for high-quality development,and investment must play a key role in ensuring steady growth.Private investment which is the main force,must be maintained.Private investment is the endogenous power and core source of economic growth.The trend of private investment also represents the market’s expectation and confidence in the future development of Chinese economy.The stability of private investment plays an important role in economic development.The central government has always attached great importance to the private economy and private investment,and has taken effective measures to promote the sustained and sound development of private investment.In November 2018,President Xi further emphasized the role and status of the private economy with the "four important aspects" at a symposium on private enterprises.The private sector is an important player in promoting supply-side structural reform,achieving high-quality development,and building a modernized economy.It is an important driving force for the development of socialist market economy.It is an important achievement of the development of the socialist market economy and an important force for realizing the Chinese Dream of the Chinese people.In the Report on the Work of the Government issued in March 2022,Premier Li Keqiang pointed out that private investment accounts for most of the investment.We will give full play to the leading role of major projects and government investment,improve relevant supporting policies,and fully mobilize the enthusiasm of private investment.However,under the continuous economic downturn and the "triple pressure",the growth rate of the national fixed asset investment,whether it is infrastructure investment,manufacturing investment or real estate investment,has slowed down,while the private investment has slowed down more than the overall investment.Since 2020,with the impact of the COVID-19 pandemic,the international economic situation has become increasingly grim,and the world is facing a great recession.Private enterprise investment has faced unprecedented impacts and challenges.Although the central government has taken various measures at the same time in recent years,insisting on the formulation and implementation of positive policy measures such as tax reduction and fee reduction,promoting inclusive small and micro loans,continuously improving the business environment and so on,to support and encourage the development of private enterprises,in terms of finance,financial,economic costs,business environment and other aspects of the private enterprises through the smooth transition of economic structure provided a guarantee.However,in the "new normal" of the economy and the complex and changeable international economic situation,the investment of Chinese private enterprises is faced with the external pressure of the increase of unpredictable factors in the external macro environment.For a long time,they also suffer from the constraints of financing and the squeeze of real estate on credit funds.Therefore,to solve the dilemma that the expansion of investment scale is increasingly insufficient in driving the growth of our national economy,the research of this paper focuses on the analysis of influencing factors of private enterprise investment,the efficiency measurement,and the effect test of policy measures to boost the investment of private enterprises,and to study whether private enterprises have the problem of insufficient investment to some extent.This dissertation aims to encourage private enterprise investment to provide decision-making ideas,and to optimize economic structure,solve the urgent problems in the transformation of economic development pattern,such as alleviating the pressure of private enterprise investment,improve private enterprise investment efficiency and so on to put forward feasible policy suggestions.Based on the above background,the research contents of this dissertation mainly include:(1)Sort out the theoretical basis related to this dissertation,analyze the conclusion of relevant domestic and foreign academic research and empirical regression results,and provide theoretical support for the follow-up research,to accurately locate the research goals and explore breakthroughs in research.(2)From the perspective of financial services for the development of the real economy,explore the impact of the integration of industry and finance on private enterprise investment and investment efficiency.Firstly,it analyzes the role and transmission mechanism of the combination of industry and finance affecting the investment and investment efficiency of private enterprises;secondly,it uses Richardson’s investment expectation model to reasonably measure the investment efficiency of private enterprises;thirdly,on the basis of relevant micro-enterprise data,it uses dynamic panel data model conducts an empirical analysis of the relationship between the private corporates’investment efficiency and the integration of industry and finance.Then tests the intermediary transmission path of financing constraints,entrepreneurial confidence,and risk-taking ability between the two.At the same time,this dissertation explores the heterogeneous impact of the integration of industry and finance on the investment efficiency of private enterprises.(3)Baseon the point of macro-policy impact,this dissertation examines the impact of tax cuts and fee reductions on private enterprise investment and analyze the relationship of the transmission mechanism between macroeconomic policies and micro-enterprise behavior,First,an evaluation model of the investment structure of private enterprises based on the financing constraint theory is constructed,and the model is further refined into two aspects:vertical growth effect and horizontal alienation effect;As a natural experiment of exogenous shocks,fees are used to empirically test the impact of tax cuts and fee reductions on private enterprises’ investment growth and investment structure bias.On this basis,they further test the regional heterogeneity of private enterprises’ investment growth effects.Finally,a parallel trend test,an endogeneity problem test and a substitution variable test are carried out on the policy effect assessment to increase the credibility of empirical regression results.It expands and deepens the specific mechanism of macroeconomic policy factors on the investment behavior of micro private enterprises,and further enriches the existing research in this field.(4)The negative consequences of rising real estate prices on private enterprise investment are noted,and the crowding-out effect and financing constraint effect of rising housing prices and private enterprise investment are analyzed and tested.Based on the theoretical analysis of the mechanism of housing price rise on investment in private enterprises,this dissertation selects microscopic private listed company data,uses a fixed effect model to test the crowding-out effect of housing price rise on private enterprise investment,and on this basis conducts heterogeneity analysis.Test,further compare and analyze the differences of investment crowding-out effect in different regions and different historical development periods in our country;further,use the intermediary effect model to analyze the financing constraint effect of rising housing prices on private enterprise investment,and try to discuss China’s private enterprises from the perspective of housing prices.Challenges facing economic investment.(5)On the basis of summarizing the full text,and on the ground of the regression results of this dissertation,some suggestions are put forward to enhance the long-term investment confidence of private enterprises,stimulate the investment vitality of private enterprises,improve private enterprises’ effective investment,promote the realization of green growth of the economy,optimize the economic structure,and feasible policy recommendations to provide intellectual support for relevant government departments.This dissertation proposes that,in terms of financial policies,we should adhere to the differential adjustment of credit supply factors,open financing channels for private enterprises,and relieve their worries;in terms of fiscal and taxation policies,multiple measures should be taken to build a long-term policy mechanism,improve the top-level design of policies,accurately release the dividends of tax and fee reduction policies,speed up substantial cost reductions for enterprises,and help the economy develop resiliently;in terms of real estate control policies,a long-term mechanism for the healthy and stable development of the real estate market should be established to avoid the crowding out effect of real estate development on private enterprise investment;In terms of the integration of industry and finance,the preferential policies for the integration of industry and finance of private enterprises should be effectively implemented.For private enterprises themselves,enterprises should focus on the main responsibility and main business and use finance to promote production.The conclusions of this dissertation are as follows:(1)China’s private enterprises have improved their investment efficiency to a certain extent by means of the combination of industry and finance,and the combination of industry and finance can improve the investment efficiency of enterprises by easing the financing constraints faced by enterprises,improving the confidence of entrepreneurs,and enhancing the ability of enterprises to take risks.When the company’s agency problem is relatively light,the proportion of tradable shares is relatively high,and the inventory is relatively large,the company can more significantly improve investment efficiency through the integration of industry and finance;when the company located in a highly competitive industry and a highly market-oriented area,the integration of industry and finance is very important for private enterprises.The improvement effect of enterprise investment efficiency is more significant.(2)Tax and fee reduction policies have a significant stimulating effect on the investment growth of private enterprises.After the implementation of the policy,the investment willingness of private enterprises has increased by about 50%,but the contribution to the effect of enterprises’ investment structure is very limited.Private enterprises are paying more attention to research and development,but their investment in human resources is still far from enough.In addition,the investment growth effect of tax and fee reduction policies is also affected by regional influences and policy support.(3)Overall,the rise in housing prices has a significant inhibitory effect on the investment of private enterprises.The irrational rise in housing prices has caused the real estate industry to crowd out the investment of private enterprises too much,inhibiting the enthusiasm of private enterprises to invest;rising housing prices have significant negative financing constraints in the financing process,it will aggravate corporate financing constraints and inhibit corporate investment.The possible innovations of this dissertation are as follows:(1)From the perspective of financial services for the development of the real economy,this dissertation constructs a dynamic panel data model,and introduces financing constraints,entrepreneur confidence and risk bearing capacity as intermediary variables to analyze the mechanism of the combination of industry and finance affecting private enterprise investment.With the help of the combination of industry and finance,the private enterprises in our country have improved the efficiency of enterprise investment to a certain extent,and the effect is more obvious to the enterprises with low agency problems,high inventory holdings and high proportion of outstanding shares,the enterprises with high degree of competition in the industry and high degree of marketization in the local region.(2)Based on the micro data of private listed companies,this dissertation uses the DID model to investigate the impact of tax and fee reduction on the investment of private enterprises and their structural bias.It is found that tax and fee reduction have obvious effect on the growth of enterprise investment,and the stimulus effect on the special economic zone and the western region is the most significant.However,the policy of tax and fee reduction has limited stimulating effect on enterprises’ R&D investment and human capital investment.(3)This dissertation finds that the rise of housing prices not only squeezes out the investment of private enterprises,but also intensifies the financing constraints of enterprises in the financing link by reducing their borrowing capacity,resulting in a significant negative effect of financing constraints.