The Study Of The Influences Of Financial Development To Different Ownership Industrial Enterprises’ Capital Formation

After international financial crisis,some scholars develop “the theory of financial excesses”,thinks it’s not simple linear relation between financial development and growth of economy,but there exists threshold effect.As the important bond between financial development and growth of economy,the relationship between capital formation and financial development attract many scholars’ attentions.So far,many scholars,at home or abroad have conduct rich research.Although many results show financial development can accelerate the transformation of savings to investments and further capital formation.however,some scholars thinks the excess development of finance will restrains from capital formation of the real economy.Financial development has two opposite effect on the capital formation,but few scholars pay attentions to the assumption whether there exists threshold effect between them.And previous studies has not make clear the influencing mechanism of financial development to the capital formation systematicly.Meanwhile,because of the particularity of China’s financial market,forms of ownership influence greatly the direction and efficiency of financial capital allocation.Nevertheless,most scholars still conduct researchs based on the hypothesis of “no influence of ownership ”。thus,the article pays attention to the nature of enterprise’s property rights,makes clear the mechanisms of contributions of financial development to industrial capital formation and relationship between them,and further discusses how to facilitate the capital formation by developing the financial system.First of all,the article reviews theory of financial development,theories of capital formation and the mechanism of ownership influencing capital allocation。In the empirical analysis,by using panel data from the state industrial enterprises and private industrial enterprises in China as sample,the paper studies the relationship between the financial development and the regional capital formation of the real economics.The empirical results show the development of bank-based financial system promotes the capital formation of SOEs more;there is inverted u-shaped relationship between financial development and industrial capital formation,which shows that financial development promotes the capital formation in begins,but overdevelopment will cause“crowding out effect”;the marginal utility of financial development to private industrial enterprises begins to weaken earlier than to SOEs.