Research On The Relationship Of Market-Oriented Business Level,Core Competitiveness And Business Performance Of Local Government Financing Vehicles

In the background of the transformation of local government financing vehicles,market-oriented business,as an important breakthrough in the transformation of local government financing vehicles,aims to enhance the ability of local government financing vehicles to carry out business activities independently in the face of the market,make up for the shortcomings of local government financing vehicles in operation,improve the "hematopoietic" ability and increase business performance.However,the market-oriented business started late,and there is no rich lesson as a reference,so we can only move forward by trial and error step by step.As local government financing vehicles have been engaged in public welfare projects such as infrastructure construction for a long time,they lack the ability to independently identify project risks and deal with general business risks,which will inevitably lead to problems such as blind investment and low investment efficiency,which is not conducive to the growth of business performance.In addition,some market-oriented businesses are only a way for local government financing vehicles to "defraud" government subsidies and assistance,and do not really want to improve the operation level of market-oriented businesses,resulting in the impact of market-oriented business level on business performance is difficult to determine.At the same time,local government financing vehicles focus on cultivating core competitiveness on the road of transformation,so as to maintain their competitive advantage and maximize economic benefits.The cultivation of core competitiveness is inseparable from the continuous accumulation of knowledge,capacity and resources of local government financing vehicles.Market oriented business brings new business management and project construction experience to local government financing vehicles,strengthens the accumulation of knowledge and ability of local government financing vehicles,and provides an important supplement for local government financing vehicles to obtain sustainable competitive advantage,thus affecting their core competitiveness.In this context,people will naturally ask the following questions:① How is the market-oriented business level of local government financing vehicles?How market-oriented business level impact business performance?② Will the impact of market-oriented business level on business performance vary with the external environment?③ What is the mechanism and path of the impact of market-oriented business level on business performance,and what role does core competitiveness play?Depth research and scientific answers to these questions will not only help to clarify the internal mechanism of the impact of the market-oriented business level of local government financing vehicles on business performance in theory,but also provide effective policy suggestions for improving the market-oriented business level of local government financing vehicles and increasing business performance.This paper defines the concepts of market-oriented business level,business performance and core competitiveness,divides the market-oriented business level into pure operational business level and quasi operational business level,and divides the core competitiveness into three abilities:revitalization ability,corporate governance ability and debt risk management ability.This paper discusses the direct impact of the market-oriented business level of local government financing vehicles on business performance and the indirect impact through core competitiveness,and the regulatory effect of financial development level and government subsidies on the relationship between market-oriented business level and business performance,and constructs the research framework of market-oriented business level,core competitiveness and business performance of local government financing vehicles.In the empirical test,firstly this paper uses the classification method to calculate the market-oriented business level,uses the PCA method to calculate the business performance,and secondly uses the panel data of 2358 local government financing vehicles from 2015 to 2020,and then uses the panel fixed effect model,regulation effect model,intermediary effect model and other measurement means to test the research hypothesis.The main contributions and findings of this paper are:First,it studies the direct impact of the market-oriented business level of local government financing vehicles on business performance.This paper selects the local government financing vehicles that issued urban investment bonds from 2015 to 2020,constructs the panel data of 2358 local government financing vehicles,uses the sum of the income of each market-oriented project divides main business income to represent the market-oriented business level,and divides the market-oriented business level into pure operational business level and quasi operational business level according to the definition of market-oriented business,to test the direct impact of the marketoriented business level of local government financing vehicles on business performance,and the regulatory effect model tests the regulatory effect of financial development level and government subsidies on the relationship between market-oriented business level and business performance.The study found that:(1)The level of pure operational business can positively promote business performance.(2)The level of quasi operational business can also positively promote business performance.(3)The level of financial development plays a positive role in regulating the relationship between market-oriented business level and business performance.(4)Government subsidies play a positive role in regulating the relationship between market-oriented business level and business performance.Secondly,this paper studies the effect of market-oriented business level of local government financing vehicles on business performance through revitalizing ability.This paper used the panel data of 2358 local government financing vehicles from 2015 to 2020,calculates the revitalization ability from the perspective of coordination ability and using panel fixed effect model,intermediary effect model and other measurement means,to test whether the market-oriented business level of local government financing vehicles affects the business performance through the revitalization ability.The research found that:(1)Pure operational business and quasi operational business bring capital and experience to stock projects,revitalize stock projects and promote the revitalization ability.(2)The level of pure operational business increases the business performance by improving the revitalization ability.(3)The level of quasi operational business also increases the business performance by improving the revitalization ability.Thirdly,this paper studies the effect of market-oriented business level of local government financing vehicles on business performance through corporate governance ability.This paper used the panel data of 2358 local government financing vehicles from 2015 to 2020,constructed the evaluation index system of corporate governance capacity,calculates the corporate governance ability by using the PCA method.This paper uses panel fixed effect model,intermediary effect model and other measurement means to test whether the market-oriented business level of local government financing vehicles affects business performance through corporate governance ability.The study found that:(1)Pure operational business and quasi operational business promote local government financing vehicles establish modern enterprise system,improve corporate governance structure,improve management ability,strengthen the role of the board of directors in strategic decision-making,and promote the corporate governance ability.(2)The level of pure operational business increases the business performance by improving the corporate governance ability.(3)The level of quasi operational business also increases the business performance by improving the corporate governance ability.Fourthly,this paper studies the effect of market-oriented business level of local government financing vehicles on business performance through debt risk management ability.This paper uses the panel data of 2358 local government financing vehicles from 2015 to 2020,constructs the evaluation index system of debt risk management ability,uses the efficiency value calculated by the Three-stage DEA model to reflect the debt risk management ability,and uses panel fixed effect model,intermediary effect model and other measurement means to test whether the market-oriented business level of local government financing vehicles affects the business performance through the debt risk management ability.The study found that:(1)Pure operational business and quasi operational business enable local government financing vehicles to reduce the financing scale,master debt management skills,and bring funds to repay debts and deal with debt risk shocks,thus improving the ability of debt risk management.(2)The level of pure operational business increases the business performance by improving the debt risk management ability.(3)The level of quasi operational business also increases the business performance by improving the debt risk management ability.From the above research conclusions,it can be seen that the market-oriented business level has a positive impact on business performance,and increases business performance by improving the revitalization ability,corporate governance and debt risk management ability respectively.Therefore,this paper puts forward corresponding policy suggestions from the perspective of market-oriented business level and core competitiveness,so as to increase business performance.This study reveals the direct impact of market-oriented business level on business performance and the indirect impact of core competitiveness on business performance,makes up for the research gap in the field of market-oriented business of local government financing vehicles,reveals the important economic value of developing market-oriented business,and provides policy suggestions for improving market-oriented business level and business performance.