Impact Of Population Inflow Control On Corporate Performance

Under the background of the continuous development of our country’s economy,the acceleration of urbanization,and the increasingly developed transportation,China’s population is flowing more and more frequently between regions and cities.Factors such as migration have moved from the countryside to the cities,and from the third and fourth tier cities to the first and second tier cities.Therefore,cities,especially the first and second tier cities,have become a gathering place for population migration.The large population of large cities has begun to bring some urban problems,which has affected the healthy development of cities.It is mentioned in the 13 th Five-Year Plan that large cities should control their population size.Under policy instructions and their own development needs,major cities Relevant policies for controlling population inflows have begun.The existing literature on population control research mainly focuses on the necessity of policy implementation,the improvement of urban problems after policy implementation,and the impact of policy implementation on floating population,local residents and local governments.Different from the existing research,this article focuses on the research perspective of the changes in the performance of listed companies after the introduction of urban population inflow control policies.By selecting sample data of China’s A-share listed companies from 2011 to 2017,and conducting empirical research and analysis by constructing a double-difference method model,the impact of the implementation of population inflow control policies in the 13 th Five-Year Plan on the performance of China’s A-share listed companies.This paper studies the impact of population inflow control on labor costs to study its impact on corporate performance.The research mainly focuses on the three hypotheses proposed in this paper: population inflow control leads to a positive effect on corporate performance;this effect of population inflow control on corporate performance is more significant in non-state enterprises;This promotion is even more pronounced in labor-intensive enterprises.This paper selects the enterprise’s total factor productivity as a measure of corporate performance for regression analysis,and selects a scientific and reasonable LP method for measurement when measuring total factor productivity.Through empirical research,this article concludes that the policy of population inflow control has increased local labor costs,promoted enterprises’ R& D and innovation,actively introduced advanced technologies at home and abroad,and paid attention to human capital accumulation,which has increased the total factor productivity of enterprises and significantly promoted listing.The improvement of corporate performance;at the same time,the study also found that population inflow policies have different effects on the performance of different types of enterprises.Unlike state-owned enterprises,non-state-owned enterprises usually have to do business in accordance with the basic principles of maximizing corporate profits and costs.Adjust the number of employees,and when labor costs rise,non-state-owned enterprises have greater incentives to use other factors to replace labor.Therefore,the policy promotes the performance of non-state-owned enterprises more obviously;and because labor-intensive enterprises are extremely dependent on low-cost labor,when labor costs rise,they are more impacted,and they are more motivated to carry out research and innovation.It can replace the behavior of high-cost labor,so the policy has a more significant role in promoting the performance of labor-intensive enterprises.This article has enriched the impact of China ’s urban population control policy on enterprises,the microeconomic entities that are vital to the national economy.It has provided necessary theoretical references for the design and implementation of population control in cities,and helped government departments to re-examine population inflow control.The macro-control effect of the policy will help companies consciously use population control policies to improve business performance.