The Crowding-out Effect of Shadow Banking on Corporate Efficiency
The profit-seeking behavior of non-financial enterprises engaging in shadow banking activities distorts the long-term investment decisions of management and reduces corporate efficiency.This paper selects the sample of Chinese non-financial A-share listed companies from 2008 to 2021 to investigate the impact and mechanism of shadow banking of non-financial enterprises on total factor productivity.The results show that shadow banking business will affect the total factor productivity of enterprises by decreasing innovation levels and efficiency of capital allocation.The heterogeneity analysis of the internal governance characteristics of enterprises shows that the impact of shadow banking business on total factor productivity is more significant in enterprises with weak corporate governance and enterprises with executives having financial background.The heterogeneity analysis of the external market regulatory mechanism of enterprises shows that the impact of shadow banking business on total factor productivity is more prominent in enterprises with less analyst following and enterprises audited by Non-Big-Fours.Therefore,it is the key to optimize capital allocation and promote the high-quality development of the real economy to constantly improve the governance system of shadow banking and effectively guide non-financial enterprises to move from virtual to real in the current financial system reform.
Shadow BankingTotal Factor ProductivityEfficiency of Capital AllocationCorporate Innovation