| With the continuous development of the economy,the private economy has become an important part of the market economy in China.The private economy has played an important role in increasing employment opportunities,creating taxes,providing wealth and maintaining social stability.The investment efficiency of private enterprises will have an important impact on the overall capital allocation efficiency of our country.However,in recent years,private enterprises in China have seen the phenomenon of irregular investment.Some of them have been expanding the scale of enterprises blindly,resulting in over investment,while others can't get enough funds from the banks to support the development of enterprises,resulting in insufficient investment.Whether it is overinvestment or underinvestment ultimately leads to low investment efficiency.Therefore,the study of the investment efficiency of private listed companies in China can provide theoretical support for the deepening of China's economic reform,and it is of great practical significance.China is in the period of economic transition,the government plays a leading role in the social economy,and acts as the role of the social resource allocator.Compared with state-owned enterprises,private enterprises face many constraints in investment.Therefore,many enterprises establish various political connections with different levels of government in order to get more resources and support from the government.The existence of political relevance has been universally confirmed by scholars all over the world,but the impact of political connections on investment behavior is still not conclusive.On the one hand,the political association is regarded as an alternative to non-institutional factors,can help enterprises to obtain resources,benefits,property protection and other financing facilities,promote the enterprise investment;on the other hand,it may also become the government's"grabbing hand",distorted investment behavior of enterprises,reduce the enterprise value.Taking this as a starting point,this paper studies the impact of executives' political connections on the investment level and efficiency of private listed companies,and explores whether the existence of executives' political connections can improve the investment efficiency of private enterprises in China.Based on the research results are reviewed,and the scope of the definition of the definition of this paper of political association,and the introduction of the four theories provide theoretical support for the results of the study,they are:the social capital theory,rent-seeking theory,the government's "the hand of support" and "grabbing hand" theory.First of all,the analysis of motive system background,clarifies the political connection mechanism of political association of private enterprise investment behavior,discusses the positive effect of political connections brought to private enterprises;secondly,using the research methods of combining theoretical analysis and empirical analysis,to 2014-2016 years in China's Shanghai and Shenzhen two listed private companies experience as the sample data,using the Richardson model empirical effect of political connection on corporate investment behavior;finally,the conclusions of the research,combined with the construction of general secretary Xi Jin ping put forward the new government business relations,proposed to improve the efficiency of investment of private enterprises. |
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