| Industrial policy is an important way for the government to intervene the economy.At the same time,it is also a mean for state to impact micro-level behavior of firm in order to achieve the goal of industrial upgrading.The five-year plan mainly aims at making plan for major national construction projects,distribution of productive forces and directions for economic development vision.As an important part of national economic planning,the five-year plan has set a long-term goal and development direction for national economic development.Our country began to establish the first "five-year plan" since 1953.By the end of 2015,it has completed thel2th five-year plans.At present,China is in the 13th five-year plan.The implementation of industrial policies has indeed promoted the rapid development of the supported industries to a certain extent and also accelerated the supported industries upgraded.However,at the same time,all sectors of the society have criticized the industrial policy.The supportive industrial policies has brought about the rapid development,but it is also considered to cause industry crazy investment and result in redundant construction,which is the root of excess capacity.So its effectiveness has also been a great topic in the theoretical community.Investment is one of the three major issues in financial management and has been a concern of many scholars for a long time.Investment is an important way to allocate resources of firms.Investment efficiency is related to the long-term development and the value of the enterprises.Over-investment is common among Chinese companies.Excessive investment will waste the company’s financial resource and increase the risk of financial crisis of company,which should be concerned about.The research on corporate investment efficiency are abundant,but most related researches are from the micro perspective,lacking ones combining corporate investment behavior with the macro-environment,especially in the China’s unique system.Therefore,this article focuses on the impact of industrial policies to corporate investment.On the other hand,comparing to principal-agent theory,governance environment and government relations which the discussion of the causes of over-investment mainly focused on,The study of "management irrational behavior"based on financial behaviors has just begun.The management overconfidence discussed in this paper is an important part of management’s irrational behavior.It aims to show that when executives of an enterprise have "overconfidence" due to external influences or their own characteristics,they will make wrong decisions for projects and reduce the efficiency of corporate investment which will lead to excessive investment.Based on the existing researches,this paper takes the listed company from 2003 to 2015 as the object,combining institutional background to empirically study of the relationship between industrial policy,managerial over-confidence and over-investment.The result shows that positive industrial policies are significantly positively correlated with over-investment.Over-confidence of managers plays a role of intermediary variable in the relationship between the two.it is significantly positively correlated with industrial policy incentives and also significantly positively correlated with over-investment.In further research on the state-owned and non-state-owned grouping of samples,industrial policies in state-owned enterprises have no clear correlation with over-investment.The possible innovations and contributions of this paper are mainly reflected in the following four aspects:Firstly,the paper combine macro industrial incentive policies with micro behaviors of corporates,which improves the judgement of the industrial policy incentives.Secondly,the company’s investment behavior is placed under the background of China’s industrial system,making the study of investment efficiency more comprehensive.Thirdly,most of the existing studies on the incentive policies impacting over-investment are through external factors.This article focuses on the managerial over-confidence impacting on the correlation of incentive industrial policy and over-investment,which has opened up new conduction paths.Fourthly,the introduction of property rights as a regulatory variable has led a deeper study of the relationship between industrial incentive policies and over-investment. |
