Research On The Influence Mechanism Of Financing Constraint On The Total Productivity Of Enterprises

Total factor productivity uses the configuration and scale status of decision-making units to reflect economic growth.Increasing total factor productivity is one of the important ways to promote China’s economic development,and it helps to achieve high-quality economic growth.The key to the problem is how to promote the total factor productivity efficiently.The improvement of total factor productivity depends on technological progress and is also affected by many factors,among which the financing situation is an important factor.A World Bank survey shows that about three-quarters of Chinese companies are troubled by financing constraints.At the same time,in a survey by the Development Research Center of the State Council,Chinese companies generally believe that financing constraints is the main reason for restricting their development.Most studies believe that the financing constraints faced by enterprises will have an inhibitory effect on TFP.However,some scholars believe the improvement of internal management efficiency will be improved and the allocation of existing resources will be optimized by the financing constraints,and thereby the total factor productivity of enterprises will also be increased.In recent years,researches on financing constraints and total factor productivity at the enterprise level mainly focus on the direct impact of financing constraints on total factor productivity of enterprises.The study of the impact mechanism is helpful to uncover the black box of the impact of financing constraints on total factor productivity,and better formulate countermeasures to improve enterprise total factor productivity.In view of this,this paper attempts to analyze the direct impact of financing constraints on total factor productivity of gem listed companies in China,and explore the impact mechanism of financing constraints on total factor productivity of enterprises.Technological innovation,as an important stage of technological progress,has an impact on TFP.At the same time,as a high-risk investment activity,technological innovation is more likely to face financing constraints.After reviewing the literature on financing constraints and total factor productivity of enterprises,financing constraints and technological innovation,and technological innovation and total factor productivity of enterprises,this paper tentatively proposes that technological innovation may play an intermediary role in the impact of financing constraints on total factor productivity of enterprises.Therefore this article selects the gem listed companies in China in 2010-2018 data,uses KZ index to measure the enterprise financing constraints and ACF method to measure the enterprise total factor productivity,studies the financing constraints promotes or inhibits enterprise total factor productivity,as well as if the nature of property rights and registered area will change on the impact of financing constraints on total factor productivity direction and degree,and empirically the role of the technology innovation plays in the impact of the financing constraints on total factor productivity of enterprises.Finally,based on the conclusion of the empirical study,some Suggestions are put forward.The empirical study finds that:(1)the total factor productivity of enterprises decreases with the increase of financing constraints,and this effect is still significant after the robustness test.Due to information asymmetry,agency cost and other problems,financing constraints will affect the production and investment decisions of enterprises.Faced with appropriate investment opportunities,it is difficult for enterprises to obtain funds or pay high financing costs,which makes it difficult for enterprises to achieve effective allocation of resources,resulting in a decline in total factor productivity.The negative impact of financing constraints on total factor productivity of enterprises is more serious in western regions and samples of non-state-owned enterprises.(2)financing constraints is negatively correlated with R&D input and patent output.Companies with financing constraints will choose investment projects with low risks and high returns,which will limit R&D input and affect patent output.(3)R&D input and patent output are significantly positively correlated with total factor productivity of enterprises.Research and development investment helps to improve the efficiency of resource allocation.As the knowledge stock of enterprises,patented technologies will be converted into real productivity,thus improving the total factor productivity of enterprises.(4)R&D input and R&D investment efficiency play a part in mediating the impact of financing constraints on total factor productivity of enterprises,while patent output does not.Based on empirical studies,this paper gives some suggestions.Improve enterprise information transparency,and alleviate financing constraints.Optimize the quality of R&D investment and improve the level of technological innovation.Promote the financial market and optimize the efficiency of capital allocation.