Research On The Impact Of Financial Market Segmentation On The Survival Period Of Enterprises

Enterprises are the mainstay of the market.The sustainable growth of China's economy is inseparable from the participation of enterprises.At the same time,the healthy growth of Chinese enterprises is inseparable from the efficient,sound and fair financial market environment.The two complement each other.In the early days of reform and opening up,in order to stabilize the domestic financial situation and accelerate the pace of economic growth,the government participated in economic activities and formed a financial system dominated by large state-controlled commercial banks and government intervention.Although the control of the financial market can help the economy to get on the right track in the short term,it has reduced the efficiency of the market and distorted the allocation of resources in terms of long-term development.The regulation of interest rates and credit discrimination have widened the interest rate differential between informal and formal financial markets.Enterprises that have been financed by informal financial markets have increased their financing costs because of the deeper division of financial markets,which has seriously affected the normal business activities of enterprises.Carry out.The problem of corporate funds is not solved,just like being caught in the throat.According to the survey of the State Administration of Industry and Commerce,the average survival time of Chinese enterprises is only 6.09 years,and the living conditions are not optimistic.Although the survival problem of enterprises has always been concerned by scholars,most of them have been analyzed from internal factors of enterprises,and lack of links with macroeconomic factors.Therefore,this paper hopes to study the impact of financial market segmentation on the survival period of enterprises in light of the current situation of China's financial market segmentation.On the one hand,it enriches the research literature on the survival of enterprises,and provides some research basis for solving the problem of sustainable growth of Chinese enterprises.On the other hand,it also helps us to more objectively understand the economic effects of financial market segmentation at the micro-enterprise level.It also provides some theoretical support for the current policy of deepening financial market reform in the country.This paper selects the manufacturing enterprises in the Chinese industrial enterprise database as a sample,and uses the survival analysis method to take the financing constraints of the enterprise as the entry point to study the relationship between the financial market segmentation and the enterprise survival period.Firstly,through the analysis of Kaplan–Meier survival curves of enterprises under the overall enterprise and different financial market segmentation intensity,the conclusion that financial market segmentation will reduce the survival rate of enterprises is preliminarily concluded.After that,the semi-parametric COX proportional hazard model was introduced for empirical analysis.The results show that the financial market segmentation has indeed improved the survival risk rate of enterprises and inhibited the survival of enterprises.Moreover,market segmentation will have an impact on the survival time of enterprises by increasing the financing cost of enterprises.Therefore,financing constraints have a partial intermediary role between the two.In addition,through further research,it is found that the inhibition of financial market segmentation on enterprise survival will be different due to different ownership and industry,and it will be more restrained for private enterprises and technology-intensive enterprises.However,with the expansion of the scale of enterprises and the increase in the proportion of foreign capital,the suppression effect of financial market segmentation on corporate survival will be weakened.Finally,the Weibull model is used to test the robustness of the regression results.The test results are consistent with the previous ones.Based on the conclusions of the research,this paper puts forward relevant suggestions.Just relying on the adjustment of national policies can not really solve the survival problems of Chinese enterprises.We still need to build a long-term mechanism to gradually improve China's financial system and build a good market economy environment for the survival of enterprises.We should improve China's bank credit mechanism,improve the availability of corporate finance,and regulate the informal financial market order.For enterprises themselves,they should seize opportunities and use their support of national policies to improve their operational capabilities and improve their vitality.Under the new economic normal,we are committed to creating a more efficient and fair financial market environment,helping the development of the real economy,improving the survival rate of enterprises,and building a century-old national enterprise.