关键词: 利率 , 资金成本 , 经济扭曲 , 企业投资

Abstract:

Despite the financial constraints, Chinese enterprises have grown rapidly in recent years However, most business growth turns out to be unprofitable To understand the mechanism driving this phenomenon, we develop a simple model and use enterprises data from industrial enterprises database to test our theory We show that the main reason of growth without profit is the economic distortions in Chinas economic system In particular, enterprises, which receive preferential government treatment and fiscal subsidies, grow more rapidly without proper financial plan When the business growth is unprofitable, most incremental capital is wasted or used inefficiently.

Key words: interest rate , capital cost , economic distortion , enterprise investment