Financial Misallocation、Ownership Structure And Total Factor Productivity

This paper is intended to study the relationship between financial misallocation and total factor productivity in Fertilizer Industry. Using enterprise database 1998-2007, through statistical description, estimating productivity between different types of enterprises owned analysis financial factor misallocation of resources. Financial misallocation index is constructed by the model mismatch, and estimate the financial misallocation index in different enterprises. Finally, build a regression model between financial misallocation and total factor productivity, we get the following conclusions:In the sample period, the state-owned fertilizer manufacturing companies have the lowest cost of capital, but its overall efficiency is lowest compared with others. Private use the higher cost of funds and the overall efficiency is higher than state-owned companies, the profitability of private is higher. Financial misallocation is existing significantly in fertilizer manufacturing. From the regression results, the existence of financial misallocation of fertilizer will reduce the overall manufacturing industry TFP growth rate of 1% and this effect is to reduce TFP mainly through technical efficiency. In the sample period 1998-2007, our domestic fertilizer industry generally rendered redundant capital investment and excessive capital investment directly affect technical efficiency. Labor-capital, technical equipment can increase the level of TFP. In exploring the reasons for the financial elements of the misallocation model, the regression results show that an important factor in the impact of different types of ownership is indeed a mismatch.