Import Competition and Cost of Corporate Equity Financing:Analysis Based on Trade Network Perspective
Effective allocation of capital market resources is an important source of impact on the high-quality development of enterprises.This study uses social network analysis to construct import competition indicators at the industry level in China.From the perspective of equity financing costs,based on data from A-Share manufacturing listed companies in China from 2008 to 2020,the potential impact of import competition on enterprise resource allocation efficiency is analyzed.Research has found that import compe-tition increases the cost of equity financing for enterprises.The main reason is that import competition cau-ses the deterioration of the environment in the market for the enterprises'products,with a consequent in-crease in the uncertainty and risk of future operations,which raises the cost of corporate financing equity.At the same time,this article analyzes the potential paths to reduce the negative impact of enterprise import competition in terms of market competitiveness,corporate governance capacity,and market system.In addition,this article also analyzes the potential differences in import competition among different regions(organizations)and products,as well as the economic consequences of cost increases caused by import competition.The research in this paper provides useful policy recommendations for enterprises to cope with the potential shocks caused by import competition in the important context of further opening up to the out-side world.
Import competitionTrade networkCost of equity financeInvestment efficiency
万方数据
维普
