Research On Impact Of Political Connection On Corporate Investment Under The New Policy Of Anti-corruption

Enterprise investment is the investment made by an enterprise as a primary investor.Enterprise investment is to expand the scale,control the relevant enterprises,maintain the existing scale efficiency and other purposes,and ultimately achieve the financial goals of an enterprise by controlling the market and enhancing its competitiveness.All enterprises hope to be invincible in the brutal market competition,and to occupy as many resources as possible has become their primary task to seize the market.However,China is in the economic transition period from monomer to complex,from planning to market,and finally to world integration.The government is an important participant in the market,and the distribution right of scarce resources is still in the hands of the government due to immature market and imperfect system.Power without restriction is bound to breed corruption.Through rent-seeking and rent-setting in all links of enterprise production and operation,the government forces enterprises to establish political connection with local governments,so as to achieve the purposes of power consolidation,post promotion and private interests of local government officials.However,some enterprises take the initiative to establish political connection with local governments.Compared with the closeness between state-owned enterprises and the government,private enterprises are isolated and helpless.Due to the lack of fair competition mechanism and property right protection mechanism of private enterprises,they are treated unfairly such as unreasonable allocation of resources.Due to the lack of government support,private enterprises take the initiative to establish political connection with local governments through business entertainment expenses,food and drink expenses and other corruption channels,so as to close the distance with local governments and obtain investment and financing support and other resources.In the past 40 years of reform and opening up,the CPC central committee has always been persistent in fighting corruption on the road and continuously deepened the fight against corruption,striving to achieve "no restricted area,full coverage and zero tolerance".In this large-scale,wide-ranging and long-lasting anti-corruption campaign,Zhou Yongkang,Bo Xilai,Ling jihua and other corrupt officials stepped down one after another,having a heavy punch to corruption,and then promoting the political ecology of good dynasty.On January 11,2019,Xi Jinping,general Secretary,delivered an important speech at the third plenary session of the 19 th central commission for discipline Inspection.He stressed that we must maintain the situation of punishing corruption at high pressure,adhere to targeted treatment and accurate punishment.We need harness Both symptoms and root,then push the process that nobody wants to corrupt or can corrupt.We try to deepen anti-corruption work through multiple measures,and then consolidate the overwhelming victory of development.Will the campaign against corruption have the same effect on shopping malls as it does on officialdom? Does it have any impact on enterprise investment? Are there differences in anti-corruption effects among different property rights,industries and regions? All these questions are worthy of our study.Therefore,this paper decides to study the influence of government-enterprise relationship on enterprise investment in the context of anti-corruption.At the 18 th National Congress of the Communist Party of China held on November 8,2012,a new collective of central leaders with Comrade Xi Jinping as General Secretary was elected.In 2013,it began to implement eight regulations and carried out mass line education and practice activities and other anti-corruption new policies(hereinafter referred to as the anti-corruption campaign),setting 2013 as the starting point for the new anti-corruption policy.This article selects 2009-2015 a-share listed companies in Shanghai and Shenzhen two city as the research sample,the relationship between government and enterprises with the double difference method to test,anti-corruption and business investment,the relationship between specific empirical results shown as:(1)the political connection can promote the investment of private enterprises,but has no obvious influence on the investment of state-owned enterprise;(2)the political connection of the private enterprises of corruption promoting effect significantly,namely the relationship between government and enterprises have private enterprise through corruption can further promote its investment;the political connection of the state-owned enterprises of corruption suppression effect significantly,namely the relationship between government and enterprises have state-owned enterprise through corruption can further inhibit its investment;(3)after the anti-corruption campaign,the corruption promotion effect of the political connection of private enterprises was significantly weakened,while the corruption suppression effect of the political connection of state-owned enterprises was no obvious;(4)private enterprises with high degree of regional intervention and low degree of industrial regulation have significantly weakened the role of promoting corruption in political connection after the anti-corruption campaign;private enterprises with high degree of regional intervention and high degree of industrial regulation have significantly increased the investment after the anti-corruption campaign.In view of the above empirical results,there are the following implications and suggestions:(1)the government should streamline administration and delegate power,actively transform government functions,and delegate power to enterprises.At the same time,it can lower the threshold for entry of enterprises,help enterprises simplify the approval processes,and implement wide entry and strict exit;(2)strengthen the supply of systems,strengthen the support of rules,establish strict supervision mechanisms,further improve the relevant legal system and establish a more reasonable and scientific official assessment system.(3)enterprises should improve their internal governance level,optimize their internal structure after defining their own position,strengthen the supervision function of each position,and strengthen the legal consciousness of all members of the enterprise;(4)we need to establish a new type of political and business relations and strengthen transparent communication between government and enterprises.Enterprises and the government should respect each other and do their part to jointly improve the external business environment.