An Empirical Study On The Fiscal Subsidy Affecting The Corporate Social Capital Investment Under The Institutional Environment

In the era of Internet+ today,the competition between enterprises is increasingly fierce,which transform from the original physical capital competition gradually to new capital(social capital,human capital is known as the new capital)of the competition.Social capital is known as the “new oil” of modern enterprise competition,under the background of the absence of formal system arrangement,the social capital as an alternative mechanism of formal institutions,its important role on the development of enterprises and the increasion of economy,is taken more and more seriously by enterprises and scholars.For companies,social capital can bring a series of competitive advantage,such as the lower transaction costs,access to scarce resources,reduce the uncertainty and so on.For China,which is under the background of economic transition,the capital market is not yet mature,the marketization degree is very low,and the legal system is imperfect.What's more,the will of government intervention in economic development is very strong.Many key resources remain in government hands.Market system and administrative intervention this phenomenon caused many problems.Therefore,many enterprises showed great enthusiasm to the investment of relationship between government and enterprises,who hope to get all kinds of resources for enterprise development need through the social capital,to adapt to the current complex system environment.From the perspective of many countries' economic performance in the world,enterprises investing in the relationship capital of enterprise and government has become a very common phenomenon,which become a research hot,many scholars devote themselves to the reason and result of the investment behavior.Now although there are a lot of researches on relationship between enterprise and government,these studies mainly focused on the social capital's impact on enterprise performance,innovation,fiscal subsidies and so on,there are few scholars study the social capital from the perspective of the influence factors of the relationship capital investment between enterprise and government.In view of the special system environment and cultural background determines the close relationship between the government and enterprises on the importance of enterprise development,the relationship between enterprise and the government is unable to avoid issues in our country to research theenterprise management activity and economic behavior.Furthermore,there is a big research space in the field of factors influencing the relationship between government and enterprises.Therefore,based on the institutional environment in China,it's necessary to explore fiscal subsidies,the institutional environment and other external factors how to impact relationship capital investment between government and enterprises.Based on China's institutional environment and cultural background,this paper takes analysis and test on the influence of fiscal subsidy,institutional environment on enterprise social capital investment,using the financial data of the listed companies in Shanghai and Shenzhen stock markets from 2013 to 2015 as the research samples,which follows from theoretical analysis to empirical examination and analysis,then puts forward policy suggestions,on the basis of the rent-seeking theory,transaction cost theory and the theory of behavioral economics,based on the review of related research at home and abroad.Also,this paper puts forward the relevant policies and recommendations according to the empirical result.The results shows:(1)The fiscal subsidy has a significant positive impact on corporate social capital investment,namely,the subsidy provided by the government is becoming more,the enterprise social capital investment will increase.(2)The governance environment has a significant negative influence on corporate social capital investment,namely,in the region that the governance environment is more worse,the enterprise social capital investment is becoming more inversely.(3)The market competition intensity has a significant positive impact on enterprise social capital investment,namely,in the area whose market competition intensity is greater,the corporate social capital investment can be much more.Based on this,the paper holds that listed companies should reduce the dependence on the relationship between government and enterprises,and decline the cost of corporate social capital investment.What's more,corporations should rely on innovation to enhance their hard power.The government should improve the fiscal transparency,strictly regulate the issuance of fiscal subsidy and standardize the procedures of fiscal subsidies,build effective supervision system of fiscal subsidy.Also,the government should complete the laws,regulations,institutions,and improve the governance environment.At the same time,the government should reduce the intervention of the enterprise,which can provide fair competitive environment for the development of corporations.