Banking Concentration,Enterprise Resource Allocation And Corporate Productivity

China’s banking industry has experienced a process of gradual development from the monopoly operation of the People’s Bank to the monopoly competition of large state-owned banks.City commercial banks and joint-stock banks have gradually developed recent years.During the process,the concentration of the banking industry has continued to decline.At the same time,the declining concentration of the banking industry is also accompanied by the rise of China’s industry,which has developed by relying on abundant labor resources and continuous capital accumulation.This paper firstly analyzes the impact of the banking industry structure on the allocation of labor and credit resources,and then studies how the reconfiguration of the banking industry structure on labor and credit resources will affect TFP.This article provides a new perspective and a new perspective for understanding what is the optimal banking structure and understanding the mechanism of enterprise total factor productivity improvement.Therefore,the research in this article has strong theoretical value and practical significance.This article selects the panel data of 1900 listed companies in the Chinese A-share market from 2009 to 2018 as a sample,uses the DEA-Malmquist index method,and uses fixed asset investment,number of employees,and total operating income as input-output factors to obtain the enterprise level Total factor productivity.This article uses the CR4 index method to measure the concentration of the banking industry and query other required data through the wind database to establish a regression model.The final results are as following: 1.The decline in the concentration of the banking industry will make more productive companies attract labor inflows;but for companies with slower productivity growth or negative productivity growth,the decline in the concentration of the banking industry may cause labor resources to flow out.2.At present,the decline in the concentration of China’s banking industry is conducive to debt financing for all companies.Among them,more productive enterprises and mature enterprises with a later establishment period are more likely to attract bank credit funds in the background of the decline in the concentration of the banking industry.3.In the context of the decline in the concentration of the banking industry,credit inflows and long-term labor allocation will promote the improvement of corporate productivity.This paper verifies the robustness of the above regression results by performing regressions on different control variables,replacing the measurement methods of the core explanatory variables,and using the TSLS method to perform endogenous tests on the three basic tests.This article provides a new perspective for the consideration of how to improve China’s total factor productivity in the period of the declining concentration of the Chinese banking industry.The enlightenment of this article is as following:First,combining the empirical results of this article and previous literature studies,a decline in the concentration of the banking industry will make it easier for companies to obtain credit resources,and richer capital support will also help companies attract better workforce,which have a positive impact on total factor productivity.So that it is necessary to guide the development of Small and medium banks on the basis of more supportive policies and further China’s banking structure will be improved more reasonable.By establishing an optimal banking structure,the goal of promoting the flow of financial funds to the real economy to promote the productivity of the real economy will be achieved.Secondly,for enterprises,they should seize the opportunities of structural changes in the banking industry and continuously accelerate the progress of improving productivity,so that they can reduce financing constraints and promoting better quality labor inflows.Finally,companies also pay attention to their own management and operation capabilities.Among the control variables in this paper,many indicators that reflect the company’s operating capabilities,such as profitability and cash flow,significantly affect the relationship between bank credit,labor allocation and productivity.Therefore,it is significant for enterprises to promote productivity and management,so that they will be more benefit from the improvement of banking structure.