Does Industrial Agglomeration Promote Regional Corporate Financing? —Evidence from Listed Companies in Automobile Manufacturing Industry
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Does Industrial Agglomeration Promote Regional Corporate Financing? —Evidence from Listed Companies in Automobile Manufacturing Industry
SONG Zhen-dong1,2, LEI Hong-zhen1, LAN Juan-li1
1.International Business School, Shaanxi Normal University , Xi’an 710119, China; 2.ChinaXi’an Institute for Silk Road Research, Xi’an University of Finance and Economics , Xi’an 710100, China
Abstract Based on the completion of fixed assets investment in industrial areas, a method for calculating the degree of industrial agglomeration is constructed as well as a theoretical model of industrial agglomeration and corporate financing that takes agglomeration degree as signal. Taking the data of fixed assets investment and annual reports of listed companies in automobile manufacturing industry in 30 Chinese provinces from 2008 to 2015, this paper investigates the influence of agglomeration on the excellent enterprises’ financing ability within the industry. The result indicates that there is a negative relationship between the agglomeration and the financing ability of excellect enterprises in automobile manufacturing industry in China on both national and regional levels. Investors have significant motives for short-term investment profit which makes it difficult for funds to keep accumulating in high-quality enterprises. Given the homogenization of various automobile manufacturing clusters, investment is dispersed and the investment returns are low, which limits the development of high-quality companies. Therefore, monitoring the industrial agglomeration degree and the financing situations of corporations while taking agglomeration degree as signal can effectively decide the phase of agglomeration, guide the agglomeration regions in adjusting industrial structure, promote the industry upgrading and facilitate investment procurement and growth for excellent enterprises.
2019, Vol. 36 
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