Industry-finance Combination, Shareholding Structure And Company Investment Efficiency

Nowdays China has entered a critical period of economic reform,economic restructuring and industrial upgrading will be the main issues facing the next period of time.Whether it is to adjust the structure of the transformation of economic development,or encourage innovation to optimize the industrial layout,need an effective capital market as a support.However,the indirect financing dominated by banks remains in the dominant position in social financing,Chinese enterprises are widespread finding it difficult and costly to obtain financing,which will seriously restrict the motivation and capability of enterprises to actively restructuring and upgrading.As a new mode of development,the integration of industrial-financial capital(IIFC)through mutual ownership is theoretically helpful to accelerate the flow of capital and improve the efficiency of capital allocation,which is also attracting more and more companies’ attention in recent years with state’s explicit support and encouragement.However,the IIFC is a double-edged sword,which can promote the development of the economy and may also bring negative impact on the economy.The problems in the process of IIFC are not only the problems to be solved urgently,but also the problems that should be paid attention to.At present,the related research is mainly focused on IIFC’s effect on corporate financing constraints and performance,there are following deficiencies:first,the lack of research on the efficiency of investment;second,ignoring the difference among different IIFC forms;third,not considering the endogeneity problem may exist;firth,few taking corporate governance mechanism into account.Corporate performance is fundamentally determined by the company’s investment efficiency,and the main role of IIC is to flow funds to facilitate investment.In addition,in the implementation process the relationship between the company and financial institutions will inevitably be changed,according to the principal-agent theory,the changes of relationship will affect company’s investment decision through corporate governance mechanisms.In view of this,this paper took listed companies holding bank shares as samples,systematically analyzed IIFC’ effect on investment efficiency and its mechanism,moreover,taking ownership structure as the breakthrough point,this paper also investigated the influence of IIFC on corporates’ investment under different corporate governance environment.Taking 2007⒍2015 2109 listed companies as samples,based on the propensity score matching technique,the empirical study found that:(1)On the whole,IIFC has the function of correcting inefficient investment,and this function mainly by relieving underinvest in the listed companies,at the same time,IIFC has a positive insignificant correlation to overinvest;(2)IIFC’s influence on corporate investment efficiency is significantly different according to environment of corporate governance.Compared with the companies with lower ownership concentration,IIFC is more conducive to ease underinvest in companies with higher ownership concentration.Compared with companies having low proportion of state-owned shares,IIFC led to overinvest in company with higher proportion of state-owned shares.There is no significant difference in the effect of IIFC on investment in companies with different circulation shares;(3)Enterprise size,corporate age,profitability,investment spending,growth capacity,money holdings are key factors affecting the implementation of IIFC,while sharing financial industry monopoly profits and easing liquidity constraints is the main motivation for enterprises to implement IIFC;(4)With the increasing in the proportion of listed companies holding bank shares,without holding the case,although the bank’s equity owned by company increased,companies’ investment efficiency decreased,the overinvestment and underinvestment is not significantly reduced.At last,this paper suggested to further promote IIFC through the way of companies holding bank shares,and improve corporate governance,ensure financial institutions independent decision-making,break the financial monopoly,reduce government intervention etc.