Ziyuan Kexue (Nov 2024)
The impact of land resources dual misallocation on the over-investment of enterprises
Abstract
[Objective] In view of the widespread over-investment problem of Chinese enterprises, this study took land resources allocation as the entry point to explore how land resources dual misallocation affect the over-investment of enterprises, and provide policy enlightenment for optimizing land resources allocation to alleviate the over-investment of Chinese enterprises. [Methods] Using data from 1017 listed companies and 185 cities from 2007 to 2021, a panel Tobit model combining macro and micro variables was constructed to depict the impact of land resources spatial and use misallocation on the over-investment of enterprises and test their mechanisms. [Results] (1) Both land resources spatial and use misallocation significantly contributed to the over-investment of enterprises, and the impact of land resources use misallocation on the over-investment of enterprises was regulated by spatial misallocation. (2) In cities with relative land supply surplus, land resources spatial misallocation promoted over-investment of enterprises by exacerbating the disorderly expansion of enterprises and the imbalance of economic structure. In cities with relative land supply shortage, land resources spatial misallocation promoted over-investment by triggering financing expansion and factor substitution. (3) In cities with relative land supply surplus, land resources use misallocation promoted over-investment by providing multiple subsidies and reducing the entry threshold of enterprises. In cities with relative land supply shortage, land resources use misallocation promoted over-investment by causing asset bubbles and demand suppression. [Conclusion] We recommend to reasonably adjust the spatial pattern of the allocation of construction land, and actively promote the market-oriented allocation of land factors, so as to alleviate over-investment and improve the investment efficiency of enterprises.
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