Research On The Impact Of Pyramid Structure On Enterprise Total Factor Productivity

Since the Central Economic Work Conference in December 2016 for the first time put forward the requirement to improve total factor productivity,subsequent major conferences and relevant policies have taken the improvement of total factor productivity as the driving force for high-quality development.The report to the19 th National Congress of the Communist Party of China has put forward the urgent requirement for improving total factor productivity.It has also been pointed out in the report to the 20 th National Congress that high-quality development is the primary task of building a modern socialist country in an all-round way.We should adhere to high-quality development as the theme and strive to improve total factor productivity.It can be seen that total factor productivity has become an important index to measure our high quality development.From the micro point of view,the improvement of total factor productivity of enterprises is very important for the transformation of China’s economic growth mode in the critical period of China’s stride towards Chinese-style modernization.Different from some financial indicators commonly used in the past,the measurement method of total factor productivity of an enterprise is used to measure the output efficiency of all input factors rather than only some factors,that is,it comprehensively measures the input resources and the ability of efficient operation of an enterprise,and can truly and objectively reflect the comprehensive economic benefits of an enterprise.Therefore,total factor productivity is of great research value.Therefore,it is necessary to study the ways to improve enterprise total factor productivity.In the new era,marketization has become the main melody of Chinese economic system reform.Pyramid structure is a kind of organizational structure form of enterprises at the historic moment,and the stock ownership structure mode,which is widely used by Chinese enterprises after being tested by practice,can exert the function of the internal capital market to a certain extent,alleviate the financing constraints and promote the all-round development of enterprises.Academically,literatures on the economic consequences of pyramid structure mainly focus on the impact on innovation input and investment efficiency of enterprises,while few literatures on the impact on total factor productivity of enterprises.In addition,in previous studies,many scholars focused on the external factors affecting total factor productivity,such as industrial policies and infrastructure construction environment,while few focused on the internal factors influencing the pyramid ownership structure.Therefore,this paper selects enterprise total factor productivity as the research object,systematically studies the effect and mechanism of pyramid structure on enterprise total factor productivity,and adopts the latest data to conduct research from both theoretical and empirical perspectives.The results show that:(1)The more the number of pyramid layers,the higher the total factor productivity of the enterprise.(2)The increase of pyramid layers can improve the total factor productivity of enterprises by easing financing constraints.(3)The independence of the board of directors has a positive moderating effect on the relationship between pyramid layers and total factor productivity.(4)Property rights have obvious heterogeneity in the relationship between pyramid structure layers and total factor productivity,that is,under certain other conditions,pyramid layers has a stronger promoting effect on the total factor productivity of state-owned enterprises than non-state-owned enterprises.In addition,through further analysis,this paper finds that:(1)external economic policy uncertainty has a significant negative moderating effect on the relationship between pyramid structure layers and total factor productivity.(2)Compared with regions with low degree of marketization,pyramid structure layers is more conducive to improving total factor productivity in regions with high degree of marketization.(3)The number of pyramid control chains has a certain positive effect on the improvement of total factor productivity of enterprises,but the effect is not as good as pyramid layers.Finally,according to the research conclusions of this paper,some enlightening suggestions are provided on how enterprise management should carry out the structure of corporate ownership structure and how government departments should cooperate with enterprises to promote market-oriented reform and improve the total factor productivity of enterprises.