Research On The Impact Of Banking Competition On Enterprise Capital Labor Ratio

Since the reform and opening up,China has achieved rapid economic growth with the help of a large and relatively cheap labor force.However,in recent years,China’s labor price has been rising,and the "demographic dividend" is gradually disappearing.China’s economic structure is in a critical period of transformation from labor-intensive to capital and technology intensive.Under this background,enterprises use automatic machines and equipment to replace personnel employment,which provides a feasible way to alleviate the rise of labor costs and promote the transformation of enterprise production mode.Financing constraints are one of the important reasons that hinder enterprises from deepening capital.Therefore,improving the capital labor ratio of enterprises is inseparable from the support of the financial system,especially the banking system.Full competition in the banking industry can not only increase the loan supply from the total amount,but also reduce the financing cost of enterprises.Therefore,this thesis attempts to study the impact of banking competition on enterprise capital labor ratio,explore how to make the banking industry play a promoting role in the process of enterprise capital deepening,and make a beneficial exploration for the deepening reform of banking industry and the transformation of enterprise production mode.Firstly,this thesis combs the literature at home and abroad,combined with the relevant theoretical basis,analyzes the mechanism of banking competition on enterprise capital labor ratio,and puts forward the research hypothesis.Secondly,it expounds the changing trend and current situation of China’s enterprise capital labor ratio and banking competition.Thirdly,using the number of bank branches to measure the degree of banking competition at the city level,combined with the data of A-share listed enterprises from 2012 to 2019,this thesis empirically analyzes the impact of banking competition on enterprise capital labor ratio,and carries out robustness test,endogenous problem treatment,heterogeneity analysis and further research on enterprise economic value.Finally,draw the research conclusions and put forward policy suggestions.Through theoretical and empirical analysis,this thesis mainly draws the following conclusions:Firstly,banking competition can significantly improve the capital labor ratio of enterprises by alleviating the financing constraints of enterprises.Secondly,in the robustness test excluding the samples of municipalities directly under the central government,it is found that banking competition has a strong positive effect on the capital labor ratio of enterprises directly under the central government.Thirdly,the heterogeneity analysis of the nature,scale and age of enterprise property rights shows that the benefit of banking competition to enterprises in improving the capital labor ratio is more prominent in non-state-owned enterprises,small-scale enterprises and young enterprises,which proves that the intensification of banking competition alleviates the problems of credit "ownership discrimination" and "scale discrimination".Fourthly,the heterogeneity analysis of enterprise labor skill structure shows that the capital labor ratio of state-owned enterprises with financing advantages is higher than that of non-state-owned enterprises.After the banking competition improves the enterprise financing environment,state-owned enterprises tend to upgrade capital and non-state-owned enterprises tend to replace low skilled labor with capital.Fifthly,there is an inverted U-shaped relationship between enterprise capital labor ratio and enterprise economic value.There is an optimal capital labor ratio.Capital deepening before the inflection point can enhance economic value.According to the research conclusions,the following policy suggestions are put forward Firstly,accelerate the deep-seated reform of the banking industry,reduce government intervention in further narrowing the differences in ownership and scale,and stimulate the vitality of private enterprises.In terms of balancing regional differences,the government reasonably guides the flow of credit funds to underdeveloped areas,so as to improve the activity of enterprises and the level of economic development.Secondly,help enterprises to make reasonable decisions,grasp the optimal investment proportion of capital and labor factors,strengthen post investment management of assets,improve the level of human capital,optimize the structure of labor skills,and balance economic development and stable employment.