The Influence Of RMB Exchange Rate Changes On Enterprise Investment From The Perspective Of Heterogeneity

The existing literature has done a lot of research on the impact of exchange rate changes on investment.However,they mainly studies the impact of exchange rate changes on the macro level investment,less concerned about the impact on the micro level investment.In addition,there is little research on the impact of exchange rate changes on micro enterprise investment based on the micro exchange rate.Different companies engage in import and export trade business with different countries or regions,so in fact different enterprises are faced with different RMB exchange rate changes,only by using micro enterprise level exchange rate more accurately estimate the influence of exchange rate changes on the fixed-asset investment.In view of the above reasons,it is necessary to study the impact of exchange rate changes on investment in enterprise based on the micro exchange rate.Moreover,for our country,there are enterprises of different ownership types,different trade types,etc.Does the heterogeneity of these enterprises lead to the exchange rate changes that affect its investment differently? Current research has paid little attention to this issue.Based on the above background,this paper studies the impact of micro exchange rate changes on enterprise investment in the perspective of enterprise heterogeneity.In the theoretical analysis part,this paper analyzes the ways and mechanism of influence of exchange rate changes on enterprise investment from two aspects: exchange rate level fluctuations and exchange rate volatility.In addition,the paper take enterprise heterogeneity as the starting point,analyzing the influence of enterprise characteristics on the investment effect of exchange rate changes from four aspects: the type of enterprise ownership,the mode of business trade,the degree of enterprise financing constraints and the markup.On the basis of theoretical analysis,this paper examines the influence of RMB exchange rate changes on fixed-asset investment under the angle of the heterogeneity.At first,we calculate the actual effective exchange rate of each period of the enterprise after trade weighted and excluding the change in the price level of the country and the trading area.Then,use from 2000 to 2011 panel data of 305 manufacturing listed companies as samples,with System GMM method the paper examines the influence.The main conclusions show as follows: Overall,RMB appreciation has negative impact on fixed-asset investment,while the greater the volatility of the RMB exchange rate,the enterprises will increase the fixed-asset investment in the current period to avoid the greater exchange rate risk in the future.Furthermore,from the perspective of heterogeneity,the RMB effective exchange rate changes have the most significant effect on the fixed-asset investment in private enterprises but not significant in state-owned enterprises.The processing trade enterprises and the non-financing-constrained enterprises,are most negatively affected by RMB appreciation,while the general trade enterprises and the financing-constrained enterprises are most positively affected by RMB exchange rate volatilities.The paper also find that RMB exchange rate changes have greater impact on fixed-asset investment of enterprises which having higher markup.The innovation of this paper,in the first place,is to analyze the influence of RMB exchange rate changes on the fixed-asset investment from the micro level by measuring the exchange rate at the enterprise level.Besides,this paper studies empirically on the influence of enterprise heterogeneity on the investment effect of exchange rate changes,helping to make up for the lack of existing research.