Analysis Of Industrial Policy Support And Enterprise Investment Efficiency

Enterprise investment efficiency can reflect the level of development and value of the company.Enterprises' rational use of the resources to invest can not only improve their own value,but also improve resource utilization,and contribute to the healthy development of the industry and the entire economy as a whole.The investment behavior of micro-enterprises is affected by the macroeconomic environment.As a kind of macroeconomic policy,industrial policy can significantly improve the external environment of the enterprise.The Chinese government has a typical "strong intervention" feature,and industrial policies are used more in China.In order to meet the needs of economic and social development,the government often formulates relevant industrial policy plans based on the judgment of the future development of the industry,and uses government subsidies and tax incentives to guide the re-allocation of resources,promote the transformation and upgrading of the industry,and achieve steady economic growth in China.However,if the industrial policy is not implemented properly,it can cause enterprises to blindly follow the investment,thereby reducing investment efficiency.This paper combines China's special institutional environment to study the impact of industrial policy support on corporate investment level and investment efficiency,and to make a sample regression according to the nature of property rights.Starting from the different means of implementing financial management and administrative control,the mechanism of industrial policy on investment efficiency is examined.Through empirical tests,it is found that when supported by industrial policies,it can significantly improve the investment level of enterprises,but at the same time reduce investment efficiency.The results of the sub-samples show that private enterprises are more likely to increase their investment levels when supported by industrial policies.Further research results show that the over-investment of enterprises has been increased by the support of industrial policies,and the lack of investment of enterprises has not been alleviated by being supported.Finally,it is found that industrial policy affects the investment efficiency of enterprises from two aspects:financial support and administrative control.