Research On The Efficiency Of Capital Allocation Of Listed Companies

At present,China has entered a"new normal" economic stage,and is in a critical period of economic transformation,industrial upgrading and coordinated regional development.The "13th Five-Year Plan" outline clearly states that improving the quality and efficiency of development should be given the highest priority under the"new normal".Therefore,promoting economic restructuring and accelerating the transformation of economic growth mode is one of the most serious challenges and most urgent tasks for our economic development.The basic function of the financial system is to process optimal allocation of capital.A financial system that is compatible with economic development will reduce transaction costs and solve information asymmetry.It will help investors identify investment opportunities,improve capital allocation efficiency,and promote economic growth.Therefore,based on the perspective of the operation of the real economy,the main body of China's real economy,listed companies,will be the research object of this article.This article will also provide more accurate and comprehensive measurement and analysis of the capital allocation efficiency of listed companies in China from the overall,industry and regional levels.Under the economic transformation background,this article has important practical significance and policy implications.After having defined,combed and compared concepts,theories and measurement methods related to capital allocation efficiency,this paper considers that capital investment has a lag effect,that is,the current capital investment will be affected by the previous period,so a first-order lag term of net asset is used as a control independent variable to modify the Wurgler model.At the same time,due to the lag term of capital investment,the model can not only measure the allocation efficiency of incremental capital,but also the allocation efficiency of stock capital.Based on the corrected Wurgler model,this article conducts comprehensive measurement and analysis of the capital allocation efficiency of the listed companies from the first quarter of 2012 to the third quarter of 2018,including time trends,capital allocation sources and spontaneous investment tendency,from the overall,industry and regional levels.The study finds that the overall stock capital allocation efficiency of listed companies in China is much higher than the incremental capital allocation efficiency,indicating that the current investment of listed companies in China is mainly driven by stock capital,and the current output value is difficult to be converted into investment,and the conversion rate is quite low;It also presents large fluctuations,which is closely related to the development characteristics of China's industry,industrial policies and financial support.In the past five years,the impact of other business income on the efficiency of incremental capital allocation has been very small,while the non-operating income and expenditure has been much bigger,and its impact has not decreased until 2016.At the industry level,the five industries with the highest capital allocation efficiency are:Electrical/water production and supply,Transportation/warehousing and postal services,Water conservancy and public facilities management,Information transmission software and information technology services,Leasing and business services.These industries are mainly monopolistic infrastructure service industries and technology-intensive industries.The five industries with the lowest capital allocation efficiency are:Finance,Culture/sports and entertainment,Wholesale and retail,Manufacturing,Mining,which are mostly in service industries and overcapacity industries.The five industries with the highest level of spontaneous investment are:Scientific research and technology services,Mining,Health and social work,Real estate,Water environment and public facilities management;the five industries with the lowest level of spontaneous investment are:Accommodation and catering industry,Transportation/warehousing and postal services,Construction,Wholesale and retail,Agriculture/forestry/animal husbandry and fishery.At the regional level,the three regions with the highest capital allocation efficiency are Northwest,South and East of China,and the lowest is Southwest region,far lower than other regions.The three regions with the highest level of spontaneous investment are Middle,North and Southwest of China,and the lowest is the Northwest region,far lower than other regions.Based on the empirical results of multi-faceted and multi-angled analysis of capital allocation efficiency of listed companies,the following suggestions are made:stimulating the vitality of market participants and continuously optimizing the business environment;persisting in innovation to lead development,fostering new kinetic energy;promoting regional coordinated development and promoting regional complementary advantages urban and rural integration development;speed up pollution prevention and ecological construction,and vigorously promote green development.