The Opening Of High Speed Railway And The Diversification Of Enterprise Investment

Transportation infrastructure is an important support and guarantee for China’s economic development,and a lifeblood of China’s economic development.As a popular means of transportation,high-speed rail has the characteristics of fast,safe and comfortable,so it is favored by people.The opening of high-speed rail greatly shortens the space distance between the two places,facilitates people’s travel mode,promotes the exchange of information and culture,and has an important impact on social and economic activities.From the current research,the opening of high-speed rail,on the one hand,shortens the space distance between cities,promotes the flow of production factors,and promotes economic development;on the other hand,high-speed rail affects the investment activities of micro enterprises by reducing information asymmetry,financing constraints,investment risks,etc.As one of the most important financial decisions,investment has always been a research hotspot of experts and scholars at home and abroad.In an imperfect market,information asymmetry will increase agency problems,financing constraints and investment risks,which will affect the investment activities of enterprises.Therefore,how to reduce information asymmetry and improve the level of diversification of enterprise investment has always been a hot topic.In this paper,through the quasi natural experiment of the opening of high-speed rail,the impact of the opening of high-speed rail on the diversification of enterprise investment is studied by using the listed companies of Shanghai and Shenzhen A-share as the initial samples from 2003 to 2018.The conclusion of this paper shows that the opening of high-speed rail can improve the level of investment diversification by reducing information asymmetry,financing constraints and investment risks.In addition,compared with the central city enterprises,the advantages of high-speed rail opening to reduce the information asymmetry,financing constraints,investment risks and other advantages caused by the geographical distance of non central city enterprises are more obvious,so the effect of high-speed rail opening to non central city enterprises is more significant.At the same time,when the quality of internal control is better,the enterprise is more conducive to grasp investment opportunities,make investment decisions in time,and improve the diversification of enterprise investment.Further research found that when the bank shareholding ratio or the investors’ field research is added,the regression results are still significant,which shows that when the bank holds the shares of the enterprise or increases the number of field research for investors,it is conducive to the diversification of enterpriseinvestment.In this paper,the reliability of the conclusion is proved by the robustness test,including the tendency matching method and the instrumental variable method.This paper combines the macro policy of China’s high-speed railway opening with the micro economic activity of enterprise investment diversification.On the one hand,it can test the economic consequences of China’s high-speed railway opening,on the other hand,it has certain reference significance for enterprises to choose their geographical location.At the same time,it enriches the theoretical literature of the impact of the improvement of transportation infrastructure on micro enterprises,which has important theoretical and practical significance.