Research On The Impact Of Capital Market Opening On Rent-Seeking Of Enterprises

Maintaining a fair order and improving efficiency are two major pursuits of the development of China’s capital market.However,the existence of rent-seeking by enterprises is extremely detrimental to market fairness and efficiency.As a "direct non productive activity",rent-seeking will not only squeeze the productive expenditure of enterprises,reduce their competitiveness and innovation ability,but also undermine the political order and economic and social development,seriously hindering the development of enterprises and markets.At present,scholars generally believe that rent-seeking originates from imperfect market mechanism.The 20 th National Congress of the Communist Party of China proposed to adhere to the reform direction of the socialist market economy,adhere to the high-level opening up,advocate the decisive role of the market in the allocation of resources,and create an economic system with efficient market mechanism,moderate macro-control,and dynamic micro-subjects.However,due to the long-term influence of the planned economy,China still needs to strengthen its market mechanism in maintaining the order of fair competition in the market and establishing an effective allocation of social resources.As a result,in real economic life,some economic entities covertly conduct acts contrary to the goals of the market economy.Among them,when the market mechanism is not perfect,the market information is not complete,the supervision and governance is not perfect,and the resource allocation is distorted.Enterprises have strong motivation to quickly seek relevant resources through non market informal means,and rent-seeking is serious.Therefore,to curb the rent-seeking behavior of enterprises,it is necessary to further build a high standard market economy system,and the construction of the market economy system is inseparable from the opening of the capital market and the improvement of the market system.Among them,in November 2014,the implementation of the "Shanghai Hong Kong Stock Connect" system marked the first time that China has realized the two-way opening of the capital market,which is of milestone significance in improving the market mechanism,improving the market environment and improving market efficiency.Then,as an important institutional guarantee to improve the market mechanism,it is worth exploring whether the opening of the "Shanghai Hong Kong Stock Connect" can inhibit the occurrence of rent-seeking behavior of enterprises.Accordingly,this paper uses the data of A-share listed companies in Shanghai Stock Exchange from 2011 to 2020,considers the inclusion of enterprises in the list of the subject matter of "Shanghai Hong Kong stock connect" as a quasi natural experiment,and uses the double difference model to analyze the impact of capital market opening on enterprise rentseeking behavior.The results show that:first,the implementation of the "Shanghai Hong Kong stock connect" policy has effectively inhibited the rent-seeking behavior of enterprises,which is still true after a series of robustness tests;Second,the impact of capital market opening on enterprise rent-seeking behavior is heterogeneous.In terms of enterprise heterogeneity,for non-state-owned enterprises,small-scale enterprises and enterprises with serious principalagent problems and low executive education,the inhibitory effect of capital market opening on rent-seeking is more significant,and in terms of industry heterogeneity,the impact on key pillar industries is more obvious;Third,in terms of its influence channels,capital market opening can act on enterprise rent-seeking by easing financing constraints,improving the level of enterprise information disclosure and improving the level of enterprise governance;Fourth,the institutional environment plays a positive role in regulating the impact of capital market opening on enterprise rent-seeking,that is,the better the institutional environment is,the better the effect of capital market opening on enterprise rentseeking is.The contribution of this paper is mainly reflected in the following two aspects:in terms of theoretical significance,this paper enriches the research on the microeconomic effect of the "Shanghai Hong Kong stock connect" system and the influencing factors of enterprise rent-seeking,and links the two to explore its impact effect and clarify its mechanism;In terms of practical significance,this paper is not only of great significance for further promoting the opening of capital markets and promoting the construction of effective markets,but also provides new ideas for the follow-up in-depth study of enterprise rent-seeking and the construction of a fair and effective market.