Has Capital Market Opening Changed Enterprises’ Investment Preferences?

Capital market opening is an important financial policy in China’s transition period of high-quality economic development,which plays an important role in realizing domestic and international double circulation,assisting finance return to serve the real economy.However,current e.nterprises’ investment preferences tend to a short-termism of "from the real to the virtual".To this end,this paper made an empirical study on whether the policy of capital market opening can play the rectification effect of "from the virtual to the real" and then improve the value of enterprises.To be concrete,taking non-financial enterprises from 2010 to 2019 as samples and the Shanghai-Shenzhen-Hong Kong Stock Connect system as a quasi-natural experiment,the impact of capital market opening on enterprises’ investment preferences was verified by constructing a multi-time point difference model.The results show that:(1)Capital market opening restrains enterprises’ investment substitution motivation in allocating short-term investment and guides ones to return to long-term industrial investment.(2)The influencing mechanism analysis indicates that the capital market opening has alleviated enterprise managers’ short-termism,the alleviation of short-termism is conductive to further exerting the rectification effect of capital market opening system on enterprises’ investment preferences and at the same time,the capital market opening improves the rates of return of long-term investment to short-term investment,reduces the space for financial speculation,which is an internal incentive for enterprises to improve the investment structure.(3)The heterogeneity analysis points out that the rectification effect of capital market opening system on enterprises’ investment preferences is more obvious for the enterprises located at eastern region and having good internal information environment and high risk bearing capacity.(4)The economic effect analysis proves that the improvement of investment preferences increases the value of enterprises through capital market opening.To sum up,this study analyzes the rectification effect of capital market opening on the real economy,which provides certain experience for further implementing the policies of promoting reform by opening up and comprehensively promoting the global connectivity of capital markets.Meanwhile,it is concluded that enterprise managers should abandon short-term ism,consolidating their own foundation by actively innovating and striving for inclusion in the Shanghai-Shenzhen-Hong Kong Stock Connect.The stock exchanges should attract more enterprises to fold into the Shanghai-Shenzhen-Hong Kong Stock Connect,so as to benefit more enterprises from the capital market opening.