Capital Market Opening And Enterprise Total Factor Productivity

With the downward trend of the world economic cycle,escalating trade frictions and the accumulation of China’s own structural problems,China’s economic growth rate has slipped to 6.6% in 2018.More and more studies have found that the key to China’s sustained economic growth is to improve total factor productivity(TFP).However,the improvement of TFP of enterprises will be affected by many factors,such as the innovation ability of enterprises,the efficiency of resource allocation,the level of corporate governance,the financing environment and the institutional environment.The opening of the capital market can promote the healthy and sustainable development of the capital market,optimize the efficiency of capital allocation,increase the capital supply in the capital market,and enrich the financing channels of listed companies,which will affect the total factor production rate of enterprises to some extent.However,few literatures have studied the influence of capital market opening on TFP of enterprises.Based on this background,with the help of the exogenous impact of "Shanghai-Hong Kong Stoc k Connect",this paper studies the impact of capital market opening on TFP of enterprises,and tests the impact mechanism of financing constraint.This article selects the "Shanghai tong" symmetrical interval before and after the opening in Shanghai in 2011-2018 a-share listed companies as the research sam ple,adopts "tendency to match score" and "double difference method"(PSM-DID)for empirical research,minimizing the effects of endogenous,study the capital market opening to the outside world to the enterprise the influence and mechanism of TFP.The results show that :(1)the opening of capital market promotes the improvement of TFP of enterprises;(2)compared with non-state-owned enterprises,the capital market opening plays a more significant role in promoting TFP of state-owned enterprises.(3)compared with small companies,the capital market openingplays a more significant role in promoting TFP of large companies.(4)compared with the companies whose audit institutions are not the "big four",the promotion effect of capital market opening on TFP of enterprises is more significant in the companies whose audit institutions are not the "big four".In addition,the results of mechanism test show that the opening of capital market can improve the TFP of enterprises by easing the financing constraints of enterprises.The main innovation of this paper lies in: with the help of the exogenous im pact of "Shanghai-Hong Kong Stock Connect",the relationship between the opening up of capital market and TFP of enterprises can be grasped more clearly,and the empirical evidence on the economic consequences of the opening up of capital market can be further supplemented.