Research On The Influence Of Short Loan And Long Investment On The Performance Of Chinese Manufacturing Enterprises

The behavior of enterprises supporting long-term investment projects with short-term loans is called "short-term loans and long-term investment," which is common in China’s manufacturing enterprises.Short-term loans and long-term investments correspond to two kinds of risks,which are the cash flow risk caused by the time value of assets and the expected return respectively.The risk of future cash flow due to the time value of assets will cause significant harm to the company if it is unable to repay the required funds.From the perspective of government subsidies,based on the financial data of listed manufacturing companies from 2012 to 2021,this paper uses two-way fixed effect model to study the relationship between short loan and long investment and enterprise performance as well as the role of government subsidies.Strengthen the robustness of the research results.The results show that:(1)Overall,the short loan and long investment of manufacturing enterprises have a significant inhibitory effect on corporate performance.(2)Government subsidies can effectively alleviate the negative impact of short-term loans and long-term investment of manufacturing enterprises on enterprise performance,but government subsidies all bring downward pressure on enterprise performance to a certain extent.(3)Compared with high-tech enterprises,traditional manufacturing enterprises can more effectively alleviate the harm of short-term loans and long-term investment on enterprise performance,and the regression results are more significant;Short-term loans and long-term investment have a negative correlation with the performance of both state-owned enterprises and non-state-owned enterprises.The above conclusions contain policy implications at three levels: financial market service,government subsidy system and state-owned enterprise reform.It is necessary to further improve the financial market service system and reduce the "short loan and long investment" of manufacturing enterprises.Improve the government subsidy mechanism to alleviate the negative impact of "short-term loans and long-term investment" on enterprise performance;We will deepen the reform of state-owned enterprises and eliminate credit discrimination based on the nature of enterprises.